9 December 2025
Southland Business Confidence Eases, but Regional Outlook Remains Stable
The latest Southland Business Confidence Survey (November 2025) shows confidence has eased this quarter, with businesses taking a more cautious view of both regional conditions and their own performance. This comes despite a lift in sentiment toward the New Zealand economy.
A standout result this quarter is the unanimous confidence in the direction Southland is heading, reinforcing the region’s strong foundations during a period of mixed economic signals.
Net positivity for the Southland economy fell from +64 percent to +59 percent, while expectations for individual business performance dropped sharply from +62 percent to +44 percent. In contrast, confidence in the New Zealand economy improved, rising from +38 percent to +42 percent, reflecting early signs of stabilisation as national forecasting points toward a broader economic turnaround building into 2026.
Chamber Chief Executive Sheree Carey says the results show both resilience and caution among Southland businesses.
“Southland’s business community continues to demonstrate strength, even as firms take a more cautious view of their own performance. The drop in confidence highlights the pressures many are still navigating, yet the willingness to invest, hire, and plan ahead reflects a region with strong foundations. Southland is well placed to harness emerging opportunities as conditions improve.”
While cost pressures remain a key concern, fewer businesses are reporting major impacts compared with August. Wage costs and inflation continue to be the primary drivers. Consumer demand, compliance requirements, and labour market constraints are the top challenges affecting business operations.
Investment and hiring intentions remain positive, though slightly lower than earlier in the year. Confidence in managing disruption has strengthened again, rising to 83 percent, indicating that businesses feel increasingly prepared to navigate uncertainty.
Carey says Southland’s diverse economic base continues to play a critical role.
“Major infrastructure projects, strong performance across primary and manufacturing sectors, and Southland’s collaborative business community all support regional stability. These strengths will be important as businesses look ahead to the opportunities 2026 may bring.”
The November 2025 Southland Business Confidence Report is available here.