Auckland Business Confidence A Mixed Bag, But Glimmers Of Optimism Emerge

Auckland Business Confidence a Mixed Bag, But Glimmers of Optimism Emerge

The latest Auckland Business Chamber confidence survey reveals a climate marked by both challenges and cautious optimism. While 66% of businesses report negative confidence, up slightly from 65% in May, there are early signs of recovery in economic performance expectations.

Key Findings

Business Confidence

• 66% of businesses report negative business confidence, up from 65% in May

Economic Performance

• 43% of businesses expect New Zealand’s economic performance to improve over the next 12 months, a significant increase from 29% in May.

Business Performance

• 56% of businesses report underperformance against expectations, up from 49% in May.

Business Revenue

• Revenue pressures are mounting, with 59% of businesses reporting a decrease compared to the previous year, up from 55% in May.
• 59% expect revenue to remain flat or decline over the next 12 months, an improvement from 63% in May.

Business Costs

• 72% of businesses expect costs to rise over the next 12 months, down from 77% in May
• 60% of businesses have increased or plan to increase their prices, compared to 64% in May.

Top Business Concerns

1. Consumer confidence and demand: 65% (up from 63% in May)
2. Inflationary pressure and interest rates: 43% (down from 62% in May)
3. Productivity and growth: 41% (up from 37% in May)
4. Cash flow: 37% (up from 36% in May)

“Business confidence remains under pressure, with 66% of businesses reporting a negative outlook. However, there are positive signs amid the cautious sentiment—especially in economic performance expectations, which have seen a sharp increase from 29% in May to 43% now. Additionally, concerns over inflationary pressure and interest rates have decreased significantly from 62% in May to 43% now,” says Simon Bridges, CEO of the Auckland Business Chamber.

"While revenue pressures and underperformance are mounting, with 56% of businesses reporting underperformance and 59% seeing revenue decreases, the easing of cost concerns—where 72% expect costs to rise, down from 77% in May—and the notable reduction in inflationary pressure and interest rate concerns suggest businesses are beginning to adapt to the current economic climate. Despite the overall cautious outlook, there are clear signs of resilience as businesses start to see glimmers of recovery, and there’s a growing sense that the worst may be behind us."

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