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


Economy Gets “No Confidence” Vote

15 December 2008

Media Release

Economy Gets “No Confidence” Vote

Despite lower taxes, interest rates and fuel prices, businesses in the Auckland region have given a no confidence vote to the economy over the next 3-6 months.

When asked the question if they considered the business situation in NZ would improve, remain the same or deteriorate, 56% believed conditions would deteriorate, a 24% increase on last quarter, and 18% believed conditions would improve.

When asked about their own business situation, 34% believed conditions would deteriorate, up 15% on last quarter, and 31% believed conditions would improve, down 16% on last quarter.

Employment conditions showed all the signs of a weakening economy, and when asked “do you find that getting staff is easier or harder than three months ago, 13% said harder, down from a year high of 45%, and 33% said easier, up from a year low of 6%.

Demand was considered by 57% of respondents to be the factor most limiting their ability to expand, with a further 21% saying finance.

In terms of interest rates, 79% of firms believed that interest rates would be lower in the next 12 months.

Further Snapshots

When asked what changes to firms expect in the next 12 months –
22% said full time employees would be down.
17% said part time employees would be down.
25% said total hours worked would be down.
16% said average costs would be down.
22% said average selling prices would be down.
47% said profitability would be down.

Typical comments from respondents included –

• The sharemarket took a lot of “old money” out of our economy and the finance/development companies have taken the “baby boomer” savings.
• Customers are finding any excuse to note pay in full or to delay payments.
• My monthly turnover is 60% of what it was a year ago.
• We should be doing more to show people how to deal with tough times – not just report that times are tough.
• People are quickly developing a resistance to spend.
• Hard times are made harder by people not paying and banks not supporting.

The survey was undertaken electronically last week over a 48 hour period and was responded to by 1500 Auckland firms.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>


Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>


By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>


Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>


Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>