Hutt Valley Business Confidence Surges

Hutt Valley Business Confidence Surges

Hutt Valley business confidence in New Zealand’s economy has surged in the latest Hutt Valley Chamber of Commerce Business Confidence Survey, sponsored by Red Hot Business Coaching.

Expectations and confidence have risen this quarter. A leap since September’s survey, respondents are anticipating positive activity with a net 30.4% expecting the situation to improve over the next 6 months, compared to a net -2% in September and a net 17.4% in June.

Overall figures show that 36.7% of respondents expect the national business situation to improve, compared with 20.8% in September and 33.1% in June, while 6.3% of respondents expect the business situation to deteriorate, compared to 22.8% in September and 15.7% in June.

Hutt Valley business confidence in their own business has also risen. A net 60.8% of business respondents said they expected their own business situation to improve compared to a net 41.2% in September and a net 44.9% in June.

The survey was conducted in December over a two-week period and attracted 79 respondents. Although this survey attracted a smaller sample size than previously, reflecting the time of year, increased business confidence is consistent with national confidence results.

Expectations around business investment are positive. A net 34% of businesses expect to invest more in buildings over the next 12 months, compared to a net -10.6% in September and 6.1% in June. A net 27.6% of businesses expect to invest more in plant and machinery, compared to a net 11% in September and 10.4% in June.

Business hiring expectations are positive with a net 18.8% expecting to hire more full-time staff, and a net 24.1% expecting to hire more part-time staff over the next three months.

Lack of demand and capacity are prevalent factors limiting business expansion, with finance and labour/skill shortages being present impacting factors.

Chief Executive of the Hutt Valley Chamber of Commerce, Mark Futter, said “the results show a positive economic environment and reflect national results. Business confidence is high, in part due to inflation and interest rates remaining very low during this period. ”

“It’s great that Hutt Valley business has ended 2015 on a high and entered 2016 with momentum.”

ENDS

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