northland chamber

Northland business confidence up but wavering....

Northland business confidence is continuing to hold up against signs that persistent skill shortages, increased interest rates and a difficult terms of trade are starting to impact on the local economy.

Optimism in Northland about the immediate prospects for the economy also continues to be higher than in urban Auckland.

These are among findings of regular surveys of Chamber of Commerce members conducted in metropolitan Auckland and major provincial centres in the last fortnight on how they view business prospects in the period ahead.

Main findings for Northland:

On the general business situation, 33% of Northland businesses expect the general situation to improve over the next six months – up from 27% last December - and compared to 27% in urban Auckland. The 33% in the latest survey is the sixth successive quarter that the level of business confidence has increased in regard to how Northland businesses view the economy’s overall performance.

However, in terms of individual business prospects, 48% of Northland businesses consider their prospects will improve over the next six months (58% in December), compared with 55% in Auckland.

Also 22% of Northland businesses expect business conditions to deteriorate over the next six months, compared to 13% in December. In Auckland, 21% are of this view.

On the side of optimism holding up, however, just 6% of individual Northland businesses believe their prospects will deteriorate over the next six months (8% last December), compared with 11% in Auckland.

On interest rates, 75% of Northland businesses believe they will rise over the next 12 months compared with 43% last December and 83% in Auckland currently of this view.

Commenting, Northland Chamber of Commerce head Jeff Smih suggested:

Part of the explanation for the improved optimism could relate to a flourishing local construction industry coupled with buoyant manufacturing in areas such as the marine trade.
At the same time with 80% of businesses small-medium enterprises, and almost half this group citing finance as the most limiting factor to the ability of the business to expand, the threat of higher interest rates is a concern.

An additional factor giving concern to businesses wanting to maintain growth plans is the persistent shortages of both skilled and unskilled labour.

Jeff Smith
09-4384771
ceo@northchamber.co.nz


The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz