Business Confidence Collapses As Domestic Pressures Mount – But Possible Recovery Coming

The latest Auckland Business Chamber confidence survey shows business sentiment has deteriorated, with worsening pressures on costs, cash flow, and energy affordability, and a clear shift from global worries to homegrown problems.

“Confidence has collapsed in the past quarter, with nearly two-thirds of Auckland businesses now pessimistic about the economy,” says Simon Bridges, CEO of the Auckland Business Chamber.

“What’s changed most is the domestic picture. Concerns about global risks have fallen away, while local pressures — costs, cash flow, weak consumer demand, and now nearly half saying energy is simply unaffordable — are biting harder than ever.

“Despite this, more businesses now expect the economy to improve and nearly half are forecasting revenue growth over the next 12 months. These signals show the potential for recovery.

“In line with this, more than half of businesses plan to invest and 40% expect to hire. Yet, that resilience is fragile and could quickly be stamped out without decisive action.

“Auckland businesses are prepared to bet on the future if conditions stabilise. But the message to government is clear: fiscal restraint has its place, but businesses also need growth-oriented policy settings, infrastructure investment and real relief if there is to be light at the end of the tunnel.”

Key Findings

Business Confidence

• Negative sentiment: 47% 64% (+17)

Economic Outlook (next 12 months)

• Expect improvement: 38% 42% (+4)

Business Performance (past 3 months)

• Below expectations: 50% 50% (no change)

Business Revenue

• Revenue down YoY: 49% 50% (+1 pt)
• Expect revenue increase (next 12 months): 40% 49% (+9 pts)

Investment & Hiring

• Planning to invest: 50% 53% (+3 pts)
• Planning to hire: 39% 40% (+1 pt)

Business Costs & Prices

• Expect costs to rise: 78% 79% (+1 pt)
• Raising/planning to raise prices: 61% 59% (–2 pts)

Energy & Payments

• Energy unaffordability: 37% 45% (+8 pts)
• Fewer customers paying on time: 40% 41% (+1 pt)

Top Business Concerns

1. Consumer confidence & demand: 66% 68% (+2 pts)
2. Productivity & growth: 39% 40% (+1 pt)
3. Cash flow: 37% 38% (+1 pt)
4. Inflation & interest rates: 26% 32% (+6 pts)
5. Trade & geopolitical risks: 42% 28% (–14 pts)

AUCKLAND BUSINESS CHAMBER BUSINESS CONFIDENCE SURVEY AUGUST 2025

© Scoop Media