5 June 2026
Business Confidence
The May 2026 Southland Business Confidence Survey reflects a more cautious business environment, with confidence softening across many key indicators compared with February 2026. While
businesses remain positive about Southland’s long-term prospects, rising costs, global uncertainty, and fuel-related pressures are weighing on business sentiment and investment intentions.
40% of respondents expect the Southland economy to strengthen over the next 12 months, while 43% expect conditions to remain the same. Confidence in individual business performance has also moderated, with 30% expecting improved financial performance and 47% expecting performance to remain steady.
Despite these challenges, Southland businesses continue to demonstrate resilience. 60% of respondents remain confident in their ability to manage disruption, 60% intend to invest in property, plant and equipment over the next year, and 50% expect to hire new staff.
Cost pressures remain the dominant concern. 83% of businesses expect costs to continue rising over the next 12 months, while 93% report some impact from rising fuel costs. Global instability is also influencing business planning, with 87% expecting ongoing conflict in the Middle East to impact their business and 60% preparing for potential supply chain disruptions.
Southland businesses continue to show strong confidence in the region itself, with 96% believing Southland is heading in the right direction. Confidence in New Zealand remains positive overall, with 68% believing the country is heading in the right direction, although expectations for economic improvement have softened considerably.
Survey respondents were primarily small and medium-sized businesses, representing 87% of responses, while 13% were larger businesses with more than 50 employees. Directors and owners
accounted for 73% of respondents, followed by managers and chief executives (24%), and other roles (3%).
Overall, the survey reflects a business community that remains resilient and committed to growth, while carefully navigating cost pressures, global uncertainty, and a more challenging economic outlook.
Chamber Chief Executive Sheree Carey says
“Southland businesses remain resilient, but the survey shows a more cautious outlook than we saw earlier in the year. Rising costs, global uncertainty, and fuel-related pressures are weighing on confidence, investment intentions, and growth plans. Despite these challenges, businesses continue to show strong belief in Southland’s future. Many are still planning to invest, hire, and adapt to changing conditions, reflecting the determination and strength of our local business community. The Chamber will continue to advocate for practical solutions that reduce business costs, improve productivity, strengthen workforce capability, and give businesses the confidence to plan, invest and grow.””
Click here to ready the full May 2026 report.