Negative Business Sentiment Drops To Lowest Level Since 2022 – Business Confidence Survey

The latest Auckland Business Chamber confidence survey reveals a significant improvement in confidence, with negative business sentiment dropping to 45%—the lowest since the survey began asking the question in July 2022.

While challenges remain, businesses are showing a more optimistic outlook, particularly in their expectations for New Zealand’s economic performance over the next year.

Key Findings

Business Confidence

• 45% of businesses report negative business sentiment, down from 66% in August

Economic Performance

• 51% of businesses expect New Zealand’s economic performance to improve over the next 12 months, an increase from 43% in August

Business Performance

• 55% of businesses report underperformance against expectations, slightly down from 56% in August

Business Revenue

• Revenue pressures are still present, with 54% of businesses reporting a decrease compared to the previous year, an improvement from 59% in August.
• 49% expect revenue to remain flat or decline over the next 12 months, a notable improvement from 59% in August.

Business Costs

• 80% of businesses expect costs to rise over the next 12 months, up from 72% in August
• 63% of businesses have increased or plan to increase their prices, up from 60% in August

Top Business Concerns

1. Consumer confidence and demand: 61%, down from 65% in August
2. Productivity and growth: 41%, unchanged from 41% in August
3. Cash flow: 38%, up from 37% in August
4. International trade and geopolitical risks: 27% (new to the list in November)
5. Increased compliance: 23%

Inflationary pressure and interest rates, which ranked second at 43% in August, have now dropped out of the top 5 in November.

"The number of businesses with a negative outlook has significantly dropped, and expectations for New Zealand’s economic performance are stronger. Despite ongoing challenges, such as revenue pressures, businesses are showing resilience and a renewed belief that better times are ahead," said Simon Bridges, CEO of the Auckland Business Chamber.

Concerns around inflation and interest rates have also eased, reflecting RBNZ moves and a broader shift in mindset.

However, Simon Bridges added, “While there are clear signs of improvement in business confidence and economic outlook, the rising concern over international trade and geopolitical risks signals that businesses are becoming more attuned to the global uncertainties impacting their operations. These new concerns highlight the challenges businesses are likely to face in 2025, within a volatile global market, alongside rising costs and revenue pressures at home."

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