Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Confidence crawls back

26 June 2006

Confidence crawls back

Business confidence is starting to trend back upwards in a survey of over 800 business respondents undertaken electronically by the Auckland Chamber of Commerce earlier this week.

Key messages from the survey that asked businesses to look ahead at conditions for the next six months shows that business confidence has improved for the third quarter in a row despite renewed uncertainty that interest rates will start coming down in the period ahead.

Commenting, Chamber Chief Executive Michael Barnett notes that the sharp fall in confidence that began in the Chamber’s March 2005 survey has been replaced by an upward trend with more businesses predicting an improving environment for doing business and proportionately more believing their own prospects will improve.

“This is good news and contrasts sharply with the negative talk that is persisting in certain quarters. The evidence shows that an increasing number of businesses have decided to ‘put negativity to one side’ and are taking their own decisions to move forward.”

At the end of the day, the strong self belief of many businesses is apparent. “The survey findings show that 40% of businesses are picking the business environment to get worse in the next six months, compared with 49% who held this view at the previous survey in March and the low point of 59% in the survey last December.”

Main survey findings were:

On Confidence

- 40% of firms believe conditions for business will get worse over the next six months, compared with 49% in the previous March survey and 59% in December.

- Reinforcing the evidence of an improving trend, 12% now believe conditions will improve, compared with 8% in March and just 7% in the December survey.

- 41% of firms believe conditions for their own individual business will improve over the next six months, compared to 40% in March and 35% in the December survey. Similarly, 18% believe their situation will get worse, down from 21% and 25% in the previous two surveys.

On Skills

- 37% of firms believe it will continue to be harder to employ the right people with the right skills, compared to 42% last December and 54% a year ago.
On Interest Rates

- 44% of respondents now believe interest rates will rise, compared with 33% in March but 85% and 67% in the December and September surveys respectively.

- 10% of respondents believe interest rates will decrease in the next 12 months, compared to the 24% of this view last March and just 3% who held this view last December, and 5% in September.

Mr Barnett notes that the critical value of this survey compared to many others is that it is ‘here and now.’ The survey measures the opinion of more than 800 businesses “last week – Monday to Wednesday - not last month or six weeks ago.”
The result showing a rising level of optimism suggests that earlier talk of the economy dipping towards a recession or a hard landing was premature. Coupled with the news late last week showing annual GDP holding at above 2% suggests that business can be confident about the future and keep the upward trend going in the period, said Mr Barnett.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>