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Businesses Are Hunkering Down And Adjusting To The New Normal – Business Confidence Survey

Published: Mon 27 May 2024 08:53 AM
The latest Auckland Business Chamber confidence survey, conducted in May, reveals that Auckland businesses are bracing for continued economic headwinds and adjusting to the new normal.Key FindingsBusiness Confidence65% of businesses surveyed have negative business confidence, up from 52% last quarter.Economic Performance65% of businesses surveyed expect a continuation or decline in New Zealand’s economic performance over the next 12 months, a slight improvement from 67% last quarter.Business Performance49% of businesses report underperformance compared to expectations, a slight increase from 47% last quarter.Business Revenue55% of businesses report a decrease in revenue compared to the previous year, up from 50% last quarter.63% expect a continuation or decline in revenue over the next 12 months, compared to 62% last quarter.Business Costs77% of businesses expect costs to rise over the next 12 months, down slightly from 79% last quarter.64% have increased or plan to increase their prices, compared to 65% last quarter.Top Business ConcernsConsumer confidence and demand: 63%.Inflationary pressure and interest rates: 62%.Productivity and Growth: 37%.Cashflow: 36%.
“Businesses are facing an incredibly tough environment, with rising costs, compliance burdens, and waning confidence impacting their operations. Many report cashflow issues exacerbated by inflation and high interest rates, with little relief in sight,” says Simon Bridges, CEO of the Auckland Business Chamber.
“The slight improvement in the economic outlook is positive, but the notable rise in reported revenue decline and continued concerns about costs show that businesses are still in survival mode.”
“While businesses are hunkering down and adjusting to the new normal, I am still realistically optimistic there is hope for improvement in the economic climate later this year and into 2025,” said Mr Bridges.

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