New survey reveals Rotorua economic confidence up

Rotorua’s economic future is looking increasingly positive according to a new independent survey of local businesses and residents.

The six-monthly survey was carried out in December and January by APR Consultants for Rotorua Lakes Council.

The 2014 Business & Public Confidence Survey shows improved confidence in Rotorua over the next 12 months across most economic measures.

Local businesses surveyed recorded high confidence for the district in six out of seven economic indicators - general business conditions, unemployment, economic activity, purchasing, residential construction and commercial construction – while confidence was steady for increased promotional activity.

The general public also had strong confidence in two of the three indicators they were surveyed on – business conditions and economic activity - with confidence remaining steady for reducing unemployment.

Rotorua Lakes Council’s Economic Growth Portfolio lead, Councillor Dave Donaldson, said the survey showed conditions were generally aligning well for Rotorua in terms of expectations of more economic activity in the future.

“The survey suggests both the general public and the business community have growing confidence that our local economy has turned the corner and is on the way up. That’s really encouraging news, as it’s critical for building a positive and sustainable investment environment for our district.

“These results would appear to be backed up by other indicators in recent times – things like an increase in the value of building consents, higher retail sales, strong tourism activity and the successful attraction of major events to Rotorua.”

Mr Donaldson said growing the local economy remained one of the council’s key priorities and was an important goal of the Rotorua 2030 vision developed by the council in partnership with the community.

The Business & Public Confidence Survey reveals that both businesses and the wider public are confident of increased business activity over the next 12 months, and expect to see increases in personal income.

Businesses also expect profits to rise, more staff to be employed and more investment to be made in their business operations. They anticipate increased volumes of residential and commercial construction, a reduction in unemployment and export levels to go up in the coming year.

However businesses were less positive about prices and interest rates, expecting both to rise in the next 12 months.

The full survey is available on the council’s website www.rotorualakescouncil.nz (under Our Council>Publications>Surveys/Reports).

ENDS

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