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

 


Business Confidence Drops - Purposeful Planning Required

Business Confidence Drops - Purposeful Planning Required

A business confidence survey undertaken with almost 300 businesses in the Northland and Central North Island regions last week indicates confidence peaked in February. It suggests continuing high levels of confidence but there are some warnings. Tauranga Chamber chief executive, Dave Burnett, said that increased interest rates, difficulties finding staff with the right skills and cash flow issues all seemed to be creating a drag on what most had hoped was a recovering economy.

Key Findings:

A net 57% of firms believe general situation will improve over the next six months compared to the record 69% of this view in February this year.

30% of businesses are having difficulty finding the right employees with the right skills, an increase of 5% since February.

87% of respondents expect interest rates to rise over the next 12 months.

Firms surveyed indicated that for the next three months employment expectations were down along with hours to be worked; average selling prices were up but profitability predicted to decrease next quarter.

Commenting, Chamber chief executive Dave Burnett observed that a major concern had to be that at a time of growth firms are having difficulty recruiting people with the rights skills. Knowing we have an election ahead and that further hikes in interest rates are imminent, businesses need to be purposeful in their planning and should be thinking what actions might be required to maintain current levels of growth.

“We have managed the cost- cutting cycle well but need to focus now on how we manage growth,” he said.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news