Hutt Valley business confidence positive

19 April 2016

Hutt Valley business confidence positive

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

Expectations and confidence remain stable this quarter compared to the last survey in December.

Respondents are anticipating positive activity with a net 21% expecting the situation to improve over the next 6 months, compared to a net 30% in December and -2% in September.

Overall figures show that 32% of respondents expect the national business situation to improve, 57% expect it to remain the same, and 11% expect it to deteriorate.

Hutt Valley business confidence in their own business also remains stable. A net 52% of business respondents said they expected their own business situation to improve over the next 6 months compared to a net 61% in December and 41% in September. Of all respondents, 59% expect an improvement, 35% expect things to stay the same and 6% expect a decline in their own situation.

The survey was conducted in March over a two-week period and attracted 145 respondents.

Expectations around business investment have reduced slightly but remain positive. A net 23% of businesses expect to invest more in buildings over the next 12 months, compared to a net 34% in December. A net 18% of businesses expect to invest more in plant and machinery, compared to a net 28% in December.

Business hiring expectations are positive with a net 18% expecting to hire more full-time staff, and a net 12% expecting to hire more part-time staff over the next three months.

According to respondents, the last 3 months have seen positive sales and profitability results.

Increased profits were recorded by 28% of respondents, with 50% seeing similar profits to December. Sales both in New Zealand and through exports were positive over the past 3 months, with 40% of respondents noting an increase in New Zealand sales and 54% of respondents noting an increase in exports sales.

Lack of demand is the prevalent factor limiting business expansion, and respondents highlighted the continuous difficulty in finding skilled employees. Of respondents, 43% are finding it harder to find skilled staff compared to 3 months ago and only 4% are finding it easier than 3 months ago.

Chief Executive of the Hutt Valley Chamber of Commerce, Mark Futter, said “the results show a stable economic environment. Expectations for the next few months are confident, and likely reflect the strong results seen over the past 3 months.”

“Hutt Valley’s diverse business environment is overall performing well and feeling optimistic.”

“With strong performance comes a greater need for skilled talent. It is a concern that our businesses are still struggling to connect with the skilled staff.”

ENDS

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