2 September 2021
Business Confidence Survey
The Southland Business Chamber has conducted the first Southland Business Confidence survey, for the quarter ending August 2021.
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 November, February, May, August 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.
- Southland business confidence is low with 18% expecting that the general business situation in New Zealand will improve in the next 6 months, and 18% expecting it will stay the same. The majority of 64% consider the general business situation in NZ will deteriorate.
- The outlook on the respondents own businesses has come up with 27% of respondents expecting an improvement in their business. 18% believe business will stay the same during the next 6 months and 55% believe business will deteriorate.
- Businesses are struggling to find skilled/specialist staff, with 64% finding it harder to find skilled/specialist staff than three months ago. 18% believe it is still the same as it was 3 months ago.
- Covid-19 border restrictions is the most common limiting factor for businesses to expand their activities at 36% of respondents. This is followed by finance at 27% and demand at 18%.
- Average costs is the major concern for businesses with 85% of respondents saying it has gone up over the past three months and 82% believing it will continue to go up over the quarter. Average selling price, total hours worked and labour turnover are areas for concern. Profitability is also an area for concern with 42% of respondents saying it went down over the last quarter and 55% believing it will continue to go down.
- The biggest effect on profit over the last six months was staff costs according to the respondents, with 55%. This followed by 36% of respondents who state that COVID-19 boarder restrictions, closely followed by fuel costs at 27% had the biggest effect on their profit.
- COVID-19 border restrictions is the main area of concern for the next six months as having the biggest effect on profit with 64% of respondents choosing this. Other areas of concern included COVID-19 level restrictions, interest rates and staff costs all with 36%.
Click here to download Business Confidence Survey: Southland Region – August 2021