Business confidence in Auckland has continued its rise for the third straight quarter, according to the Auckland Chamber of Commerce’s May-quarter survey.
The chamber’s chief executive Micheal Barnett says the survey also reveals that more needs to be done to encourage Auckland businesses into export opportunities.
Barnett says the high lift in confidence results from a combination of positive trends – increased building and construction activity, low-interest rates and the continuing boost in Auckland’s population by both immigrants and visitors.
The electronic survey took place last week.
Asked how respondents see their business situation over the next six months, a net 51% predict their circumstances will improve compared with 40% who had this view in February.
A similar trend shows when asking respondents whether the general business situation in New Zealand will improve, remain the same or deteriorate in the next six months. A net 23% of respondents believe the general situation will improve over the next six months compared to just 12% of this view last February.
Among other findings, 41% of businesses expect it to be harder to find skills in the next three months, up from the 35% of this view in February.
Additionally, there 32% of respondents expect interest rates to fall over the next 12 months compared to just 11% expecting them to increase.
More than 28% of respondents report that demand is the most limiting factor limiting their ability expand, followed by finance 23% and capacity and labour both 16%.
“Putting these factors together, Auckland is buzzing. We can justifiably say that the city’s fast pace of growth is a boost to business activity,”
says Barnett.
“The 28% of respondents citing demand as a limiting factor to their ability to expand tells me we need to do much more to encourage businesses to get into exporting,” he says.
