1 June 2025
Sentiment shifts as Southland businesses balance caution with confidence
Business confidence in Southland has softened since earlier in the year, with many local enterprises signalling a more cautious approach amid persistent operating pressures. The findings, drawn from the latest Southland Business Confidence Survey conducted by the Southland Business Chamber from 12 to 30 May 2025, show a decline in overall sentiment but also highlight continued pockets of strength and regional pride.
While 50% of respondents still expect the Southland economy to improve over the next 12 months, this is a drop from 62% in February. Similarly, expectations for stronger business financial performance eased from 65% to 54%, and investment and hiring intentions softened slightly to 64% and 56%, respectively.
Despite these trends, the survey also reflects a grounded resilience across the region. Many businesses continue to point to Southland’s diverse economic base, strong community networks, and ongoing growth in sectors like tourism, aquaculture, construction, and infrastructure as reasons to remain hopeful.
“This latest snapshot shows a shift in momentum. While optimism hasn’t disappeared, businesses are being more measured and strategic,” said Sheree Carey, Chief Executive of the Southland Business Chamber. “What stands out is not just the challenges, but the strong belief in Southland’s long-term future.”
Among the most pressing concerns were:
- Consumer confidence and demand (53%)
- Inflation and interest rates (38%)
- Mental health and fatigue (28%)
- Cashflow pressures and late payments (23%)
A concerning 38% of respondents reported being impacted by crime or antisocial behaviour over the past 12 months — a rise from the previous survey and a reflection of the broader social challenges now affecting business operations.
Still, respondents were quick to praise what is going well in the region. Many highlighted investment in the Invercargill CBD, major event attraction, and emerging commercial projects such as data centre development and new accommodation offerings, which are expected to stimulate local growth and visitation.
Carey added, “Southland businesses are proactive and deeply invested in their communities. They’re navigating rising costs and uncertainty, but they’re also planning, adapting and staying engaged in shaping the region’s economic future.”
The Southland Business Chamber will continue advocating for policies that support business productivity, reduce compliance burdens, and improve community safety and liveability.
The full May 2025 Business Confidence Report is available online at:
👉 https://southlandchamber.co.nz/resource/business-confidence/