Southland Business Confidence

Southland business confidence has strengthened considerably following the decline recorded in May 2026, with businesses showing renewed confidence in the regional economy, their own performance, investment and employment.

The August 2026 Southland Business Confidence Survey found 55% of businesses expect the Southland economy to strengthen over the next 12 months, up from 40% in May. A further 37% expect conditions to remain the same.

Confidence in individual businesses has also recovered, with 47% expecting improved financial performance, compared with 30% in May. National confidence has improved too, with 35% expecting the New Zealand economy to strengthen over the next year, up significantly from just 7% three months ago.

Businesses are backing this increased confidence with plans to invest and employ. 71% expect to invest in property, plant or equipment over the next 12 months, up from 60% in May, while 59% intend to hire new staff, up from 50%.

Looking ahead to the next three months, 28% expect to increase full-time staffing, compared with 19% who increased staffing over the past three months. Expectations for total hours worked and New Zealand sales have also improved.


Rising costs remain the biggest challenge

Despite the improvement in confidence, cost pressures continue to dominate the business environment.

77% of respondents identified rising operating costs as a top business challenge, well ahead of finding skilled staff and economic uncertainty, both at 33%. International trade and global events were identified by 27%, followed by productivity and growth at 23%.

All respondents reported experiencing some impact from rising costs, with 44% experiencing a significant impact, up from 23% in May. Inflation was identified as the biggest driver of rising costs at 27%, followed by compliance costs at 21%, with fuel and wage costs both at 19%.

There is some encouragement looking forward, with the proportion expecting costs to continue rising over the next 12 months falling from 83% in May to 77% in August.


Global uncertainty is reaching Southland businesses

The survey also explored how international uncertainty is flowing through to Southland businesses.

75% said global uncertainty is affecting customer confidence, while 46% reported impacts on supply chains and 40% on import costs. Almost one-third (32%) said uncertainty is influencing investment decisions, while 17% identified an impact on hiring.

These results highlight how international events can quickly translate into real impacts for Southland businesses, particularly through confidence, costs, trade and investment decisions.


Clear message ahead of the General Election

With the General Election approaching, businesses were also asked what actions they most want the next Government to prioritise to make it easier for businesses to grow over the long term.

The message was clear: reducing the cost of doing business was the number one priority, selected by 63% of respondents.

Other priorities included:

  • Addressing skills shortages, 33%

  • Reducing regulation, 33%

  • Energy security, 31%

  • Improving access to healthcare, 31%

  • Improving infrastructure, 29%

  • Investment in roads and transport, 27%

The results provide a clear picture of the issues Southland businesses want addressed and will help inform the Chamber’s advocacy in the lead-up to the election.


Strong belief in Southland

One of the strongest results continues to be confidence in Southland itself, with 95% believing the region is heading in the right direction.

Southland Business Chamber Chief Executive Sheree Carey said the results were encouraging.

“It’s encouraging to see business confidence strengthening again, with more Southland businesses looking to invest, grow and hire. There are still real pressures, particularly around rising operating costs, finding skilled people and wider economic uncertainty, but the strong confidence in Southland’s direction shows our business community remains positive about the opportunities ahead.

“With the General Election approaching, businesses have also sent a clear message about what matters most to them. Reducing the cost of doing business is their number one priority for the next Government, alongside reducing regulation and addressing skills shortages. These results give us a strong mandate to continue advocating for practical policies that create the right environment for Southland businesses to invest, employ people and grow.”

Overall, the August survey points to renewed momentum across the Southland business community. Confidence, investment and hiring intentions have all strengthened since May, while businesses continue to navigate significant cost pressures, workforce constraints and global uncertainty.

While confidence has not yet returned to the strong levels recorded in August 2025, the latest results show Southland businesses looking ahead with greater optimism and continuing to back the region’s future.

Click here to read the full August 2026 report.


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