Hutt Valley business confidence positive

Hutt Valley Chamber of Commerce
Sponsored by Red Hot Business Coaching

Business Confidence Survey – March 2017

Hutt Valley Chamber of Commerce
Media Release

27 March 2017

Hutt Valley business confidence positive

Hutt Valley business confidence in New Zealand’s economy has improved according to the latest Hutt Valley Chamber of Commerce Business Confidence Survey, sponsored by Red Hot Business Coaching.

Expectations and confidence have increased this quarter compared to the last survey in December. Respondents are anticipating positive activity with a net 35% expecting the situation to improve over the next 6 months, compared to net 30% in December and net 50% in September.

Overall figures show that 41% of respondents expect the national business situation to improve, 52% expect it to remain the same, and 6% expect it to deteriorate.

Hutt Valley business confidence in their own business also remains stable. A net 56% of business respondents said they expected their own business situation to improve over the next 6 months, compared to net 51% in December and net 55% in September. Of all respondents, 61% expect an improvement, 33% expect things to stay the same and 6% expect a decline in their own situation.

The survey was conducted in March over a two-week period.

Expectations around business investment have improved. A net 21% of businesses expect to invest more in buildings over the next 12 months, compared to a net 11% in December. Investment in plant and machinery has improved again from last quarter, with a net 24% of businesses expect to invest in the next 12 months, compared to a net 22% in December.

Business hiring expectations have remained consistent with a net 19% expecting to hire full-time and a net 13% expecting to hire part-time staff over the next three months.

According to respondents, the last 3 months have seen positive sales and profitability results. Increased profits were recorded by 40% of respondents, with 41% seeing similar profits to December. Sales in New Zealand were positive over the past 3 months, with 39% of respondents noting an increase in New Zealand sales, although exports were not as positive with only 10% of respondents noting an increase in exports sales.

Lack of demand continues to be the prevalent factor limiting business expansion, remaining the top factor of the last year, and respondents highlighted the continuous difficulty in finding skilled employees. Of respondents, finding skilled staff is still a challenge, with 35% saying it was harder to find skilled staff compared to 3 months ago and only 2% are finding it easier than 3 months ago. This compares with 36% finding it harder, and only 1% finding it easier in December.

Chief Executive of the Hutt Valley Chamber of Commerce, Mark Futter, said “the results show a stable economic environment. Expectations for the next few months are confident, and likely reflect the strong results seen over the past 3 months.”

“Hutt Valley’s diverse business environment is overall performing well and feeling optimistic.”

“With strong performance comes a greater need for skilled talent. It is a concern that our businesses are still struggling to connect with the skilled staff.”

ENDS

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