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


Confidence Freefall

3 October 2005

Media Release

Confidence Freefall

Confidence hit a 12 month low in a survey of over a thousand business respondents undertaken electronically by the Auckland Chamber of Commerce on Thursday and Friday of last week.

Key messages from the survey that asked businesses to look ahead at conditions for the next three months painted a grim picture of confidence in freefall; average costs and selling prices up and profits down.

Commenting, Chamber Chief Executive Michael Barnett suggested that although there may have been some elements of uncertainty due to the final announcement on the election outcome, the signals had been there for some time indicating that this may be an economy any incoming Government may not want to inherit. The big issue he said is that NZ needs to respond aggressively to these conditions with a long-term strategy that will re-position our economy internationally, and not just batten down the hatches because the conditions have got tough. By that I mean an action based response, not more paralysis by analysis, he said

On Confidence
- 55% of firms believed conditions for business will get worse over the next three months. Only 8% believe conditions will improve.

On Skills
- 46% of firms believe it will continue to be harder to employ the right people with the right skills. Those sectors most affected include manufacturing, professional services and the service sector. Frustrating business at present is the compromise they are having to make when employing, and the concern that some employees who know they are hard to replace developing an inflated value of their worth.

On Interest Rates
- 66% of respondents believe interest rates will rise, which for many will place added pressure on a shrinking bottom line.

Other Issues
- Investment in buildings and machinery in decline
- The high dollar for exporters ( “.70c to the USD is killing us, .60c would be great”)
- Fuel costs (distribution costs soaring)
- Consenting processes including RMA


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hospitality NZ: Hospitality Wages Jump 9% To Pass Living Wage
Wages and salaries across the hospitality sector continue to increase despite businesses having to battle through some of the toughest trading periods in living memory... More>>

Climate Leaders Coalition: Launches New Statement Of Ambition, Appoints New CEO Convenor

The Climate Leaders Coalition is tonight officially launching a new Statement of Ambition to accelerate business action on climate change... More>>

Retail: New Law Paves Way For Greater Supermarket Competition

Legislation that bans major supermarkets from blocking their competitors’ access to land to set up new stores paves the way for greater competition in the sector, Minister of Commerce and Consumer Affairs Dr David Clark said... More>>

MYOB: New Data Shows Increase In SMEs Experiencing Stress And Anxiety

The lingering impacts of the COVID-19 pandemic have led to a surge in the number of local SME owners and operators experiencing stress and anxiety, according to new research from business management platform, MYOB... More>>

Carbonz: Cashing In On Carbon: The New Marketplace Helping Native Forest To Thrive

The country’s first voluntary carbon credit marketplace, Carbonz, is here to restore native biodiversity and help Aotearoa reach its carbon zero goals by selling the first carbon credits exclusively from native forest... More>>
Entrust District: Dividend Will Be Welcomed After Another Tough Year
We’ve all heard of the saying; “if it sounds too good to be true, it probably is” but for Aucklanders within the Entrust District, getting their share of Entrust’s 2022 annual dividend payment really is as good as it sounds... More>>