Business confidence edged up a further 2 points to +31 in November, according to the latest Business Southland survey. However, while overall optimism improved, the expected financial performance of individual businesses dropped by 8 points to +36, reflecting a more cautious outlook on future profitability.

Click here for the November 2024 summary document

Key findings from the survey include:

• Economic Outlook: 58% of businesses anticipate a stronger Southland economy over the next 12 months, up from 54% last quarter
• Investment and Employment: 66% of businesses plan to invest in property, plant, and equipment over the next 12 months (up from 63%), while 58% expect to hire new staff (up from 56%).
• Disruption Preparedness: Confidence in managing disruptions rose to 69%, a notable rise from 59%.
• National Sentiment: 70% of respondents believe New Zealand is on the right economic path.

The primary challenges identified by businesses include consumer confidence and demand (57%), rising compliance costs (33%), and labour market constraints (30%).

Respondents believe Southland’s economic resilience is underpinned by its diverse industry base, strong community collaboration, and key sectors like agriculture and the continued operation of Tiwai Point smelter.

Sheree Carey, Chief Executive of the Southland Business Chamber, notes “These results indicate that while inflation and interest rate reductions are creating a more favourable business environment, significant challenges persist, particularly around consumer confidence, compliance costs, and labour market constraints.

“Encouragingly, the rise in investment and recruitment expectations signals cautious optimism, with businesses showing an increasing readiness to pursue growth over the next 12 months. 

“To maintain this positive momentum, both local and central governments must focus on fostering economic activity by reducing regulatory burdens and enabling businesses to prioritise productivity, innovation, and growth.”

Click on the links below to download Southland Business Confidence Insight Reports:

• November 2024 
• August 2024
• May 2024
• February 2024
• November 2023
• August 2023
• May 2023
• November 2022
• August 2022
• May 2022
• February 2022
• November 2021
• August 2021