Business Confidence Steady Despite Economic Uncertainties – February 2025 Confidence Survey

The latest Auckland Business Chamber confidence survey reveals a slight improvement in sentiment, with 44% of businesses reporting negative sentiment, down from 45% in November.

However, only 44% expect New Zealand’s economic performance to improve over the next year, down from 51%.

Key Findings:

Business Confidence:

• 44% report negative business sentiment, down from 45%.

Economic Performance:

• 44% expect New Zealand’s economic performance to improve over the next 12 months, a decline from 51%.

Business Performance:

• 45% report underperformance against expectations, down from 55%.

Business Revenue:

• 48% report a decrease in revenue compared to the previous year, an improvement from 54%.
• 46% expect revenue to remain flat or decline over the next 12 months, down from 49%.

Business Costs:

• 76% expect costs to rise over the next 12 months, down from 80%.
• 60% have increased or plan to increase their prices, down from 63%.

Top Business Concerns:

1. Consumer confidence and demand: 53%, down from 61%.
2. Productivity and growth: 40%, down from 41%.
3. Cash flow: 35%, down from 38%.
4. International trade and geopolitical risks: 27% -unchanged.

Inflationary pressure and interest rates: 27%, up from 22%.

1. Increased compliance: 20%, down from 23%.

“Business confidence has improved slightly, with fewer businesses reporting negative sentiment. At the same time, underperformance and revenue pressures have eased, showing signs of resilience in tough conditions,” said Simon Bridges, CEO of the Auckland Business Chamber.

“However, expectations for New Zealand’s economic performance have declined, with fewer businesses expecting improvement over the next 12 months. Inflation has reemerged as a key concern. While inflation concerns are lower than August's peak of 43%, cost pressures remain a significant issue,” he added.

“Looking ahead, global uncertainties persist, with trade and geopolitical risks continuing to affect businesses. Alongside these, domestic economic performance will continue to shape business conditions well into 2025,” Simon Bridges concluded.

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