Slow Start to 2008 Expected

10 December 2007

Media Release

Slow Start to 2008 Expected

The Auckland Chamber of Commerce survey of business confidence reveals a bleak beginning to 2008 if the views of almost 1000 companies surveyed are to be believed.

While overall confidence remained at similar levels to the last two quarters, Chamber Chief Executive Michael Barnett said the concerning issues have to be that –

- Cost expectations are up

- Selling prices expected to be down

- Profitability expected to be down

- 45% of businesses finding it difficult to find skilled staff.

- 20% of businesses finding it difficult to find unskilled staff (highest level in a year)

Firms surveyed also expressed concerns that the run of finance company collapses had impacted on access to finance, and that the present interest rate levels were making the cost of finance restrictive to companies looking to grow.

Of those surveyed, over 50% still expected interest rates to rise.

ENDS

See... Business Confidence Survey Dec 2007 Sec B

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