2 March 2022

Business Confidence Survey

The Southland Business Chamber has conducted it’s third Southland Business Confidence survey, for the quarter ending February 2022.

Your business experience and insights are essential to capture and include in the region’s assessment of our current business climate. The data and results we collect will provide vital information about the current economic climate in Southland, and helps us advocate on your behalf.

We will survey members during February, May, August and November each year.  The online Southland Business Confidence survey is quick to complete and we will keep the same set of questions to track any trends.

Key Points

  • Business confidence overall is down with none of the respondents expecting that the general business situation in New Zealand will improve in the next 6 months, 14% expecting it will stay the same. The large majority of 86% consider the general business situation in NZ will deteriorate.

  • The outlook on the respondents own businesses has come up with 14% of respondents expecting an improvement in their business down from 29% last quarter. 14% believe business will stay the same during the next 6 months, and the majority of 71% believe business will deteriorate.  

  • Businesses are struggling to find skilled/specialist staff, with 85% finding it harder to find both skilled/specialist and unskilled staff than three months ago.

  • Covid-19 boarder restrictions is the most common limiting factor for businesses to expand their activities at 43%. This is followed by finance at 14% of respondents.

  • 100% of respondents expect interest rates to go up in the next 12 months.

  • 42% of respondents expect the level of investment in their business to be the same over the next twelve months while 57% expect investment to be down.  

  • Average costs are the major concern for businesses with 57% of respondents saying it has gone up over the past three months and 85% believing it will continue to go up over the quarter. Labour turnover is also an area for concern for 28% of respondents.  

  • The biggest effects on profit over the last six months is Covid-19 level changes according to the respondents, with 71%. This followed by 43% of respondents who stated that COVID-19 boarder restrictions and staff costs had the biggest effect on their profit.  Sales in New Zealand and profitability have gone down for 57% of respondents, and 43% and 86% respectively expect this trend to continue in the next three months.  

  • Inflation is the new main area of concern for the next six months as having the biggest effect on profit with 57% of respondents choosing this. Other areas of concern included Covid-19 boarder restrictions and fuel costs with 42%, and Covid-19 level changes, interest rates, energy and staff costs all 29%.  

Click on the links below to download Southland Business Confidence Survey’s

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