18 June 2009

Media Release

Business Confidence Lifts In Auckland

Over 1000 Auckland businesses have responded to the Chamber’s business confidence survey that was undertaken electronically this week.

• Those who believe the economy will improve over the next 6 months have more than doubled from 14% in March to 30% in June.

• For the first time in a year, more firms believe the economy will improve in the next 6 months than deteriorate.

• Only 7% of businesses are having difficulty finding employees with the right skills compared to 25% a year ago.

• The biggest single factor limiting firms from expanding is demand (followed by finance).

• 73% of respondents believe interest rates will be the same or greater.

• In the March survey 20% of firms expected to reduce staff in the following quarter while in the June survey only 12% of firms expect to reduce employee numbers.

• This is similar for part-time employees where in March 16% of firms expected a reduction in part-time employees while in June only 10% of firms expect to have lower part time employees.

• On profitability 61% of firms expected profits to be the same or better compared to 53% in March.

A copy of the survey is attached.

The Chamber has undertaken this survey of its members for over 10 years. The survey is undertaken electronically over a 48 hour period.

ENDS

ChamberBusinessConfidenceSurvey_June09_Findings.doc