Dark Clouds Hang Over The Economy – Business Confidence Survey

Dark clouds hang over the economy, leaving Auckland businesses very gloomy according to the latest confidence survey conducted by the Auckland Business Chamber the week before Easter.

Snapshot

1. Business confidence
   • 52% of businesses surveyed have negative business confidence
2. Economic performance
   • 67% of businesses surveyed anticipate a continuation or a decline in New Zealand’s economic performance over the next 12months
3. Business performance
   • 47% of businesses surveyed state their businesses have underperformed compared to expectation in the last quarter
4. Business revenue
   • 50% of businesses surveyed report a decrease in revenue compared to the previous year
   • 62% of businesses surveyed expect a continuation or a decline in revenue over the next 12 months
5. Business costs
   • 79% of businesses surveyed expect business costs to rise over the next 12 months
   • 65% of businesses surveyed have already increased or plan to increase their prices

“It’s certainly an incredibly tough time for businesses,” says the CEO of the Auckland Business Chamber, Simon Bridges.

"The three C’s of cost, compliance, and lack of confidence are really biting. Businesses are seeing clients and consumers holding onto their wallets, leading to reduced buying, payment delays, and in some instances, no payments at all.

"Anecdotally, cashflow issues are acute, exacerbated by the inflationary and high-interest environment we are in. What’s worse is that many businesses don’t see an end in sight.

"I'm realistically optimistic; although change won't happen overnight, the prospect of lower interest rates and a pro-business government driving reforms could bring relief later this year and into 2025.

“Dark clouds may be hanging now, but every storm gives way to a rainbow eventually," says Mr Bridges.

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