5 September 2022
Business Confidence Survey
The Southland Business Chamber has conducted it’s fifth Southland Business Confidence survey, for the three months ending August 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.
- Business confidence had significantly dropped with just 10% of respondents expecting that the general business situation in New Zealand will improve in the next 6 months, down from 62.5% last quarter. 40% of respondents consider the general business situation in NZ will deteriorate, up from 25% last quarter.
This compares with 12 months ago when 18% expected that the general business situation in New Zealand to improve in the next 6 months, and 64% considered the general business situation in NZ will deteriorate.
- The outlook on the respondents’ own businesses has come up with 40% of respondents expecting an improvement in their business, down from 62.5% last quarter. 30% believe business will stay the same during the next six months and 30% believe business will deteriorate.
- Businesses are continuing to struggle to find skilled/specialist staff, with 80% finding it harder to find staff than three months ago.
- Capacity is the most common limited factor for businesses to expand their activities at 40% of respondents. This is followed by finance at 30% and demand at 20%. Note: Compared with 12 months ago Covid-19 border restrictions was first at 36%, finance 27% followed by demand at 18%.
- Average costs continue to be a concern for businesses with 50% of respondents saying it has gone up over the past three months and 60% believing it will continue to go up over the next quarter. Sales in New Zealand is an area of concern with 50% of respondents saying they went down over the last quarter. Total hours worked is also an area for concern with 30% of respondents saying this has gone up and 60% believing it will continue to go up over the next quarter.
- The biggest effect on profit is staff costs, with 40% down from 55% in the August 2021 survey. This followed by 30% of respondents who state that Covid-19 levels had the biggest effect on their profit.
- Inflation continues to be a major area of concern at 50%. The major concern as having the biggest effect on profit for the next six months is staff costs at 60% of respondents choosing this followed by supply chain with 30%, and interest rates sits at 20%.
Click on the links below to download Southland Business Confidence Survey’s