A decline in business confidence around the country is being signalled in a new report.
New Zealand Institute of Economic Research (NZIER) figures released this week shows the growing trend.
Its Quarterly Survey of Business Opinion report shows there was a “sharp drop” in confidence following the September 2017 general election.
Around 11% of businesses are expecting economic conditions to deteriorate over the first half of 2018, according to the research.
The decline in business confidence is shown across industry sectors although retailers and manufacturers are “particularly downbeat”.
“However, the pessimism was not reflected in activity indicators.
“Domestic sales remain solid in the retail and manufacturing sector. The building sector also reported solid output and new orders.
Pessimism is also strong in urban regions and especially Wellington with 33% of the region’s businesses expecting worse off economic conditions over the coming months.
Meanwhile, a decline in profitability was reported by 7% of businesses through the report.
Only 2% of businesses plan to invest in new buildings which is down from 18% in the previous quarter.
