28 August 2025
Encouraging to see confidence climbing
The August 2025 Southland Business Confidence Survey shows a lift in local confidence compared to earlier this year, with businesses expressing more optimism about the region’s outlook and their own performance.
Three-quarters (76%) of respondents are confident in their ability to deal with disruption (up from 57% in May 2025), while 67% expect the Southland economy to strengthen over the next 12 months (up from 50%). Businesses are also looking to the future, with 72% planning to invest in plant, property or equipment (up from 64%) and 62% intending to hire new staff (up from 56%). Encouragingly, 94% believe Southland is heading in the right direction (up from 89%), while 74% believe the same for New Zealand.
While positivity is improving, challenges remain. Rising costs continue to put pressure on local businesses, with 81% expecting further increases over the next year (slightly up from 79%) and 34% reporting significant cost impacts (down from 38%). Consumer confidence, compliance costs, productivity constraints, and labour market pressures are also weighing on business operations.
Overall, the survey reflects cautious optimism. Confidence in the Southland economy has lifted to a net positivity score of +64% (up from +26% in May 2025), while confidence in the New Zealand economy has risen to +38% (up from +16% in May 2025). Expectations for individual business performance also improved, lifting to +62% (up from +40% in May 2025). These results mark the strongest levels of business confidence in recent years, with Southland firms demonstrating resilience and readiness to invest, hire, and build on the region’s strengths.
The August 2025 Business Confidence Report, and previous Confidence Reports are available online at:
👉 https://southlandchamber.co.nz/resource/business-confidence/