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Auckland business owners are predicting a slow start to the new year as concerns about rising petrol prices, labour shortages and high interest rates mount.
A Chamber of Commerce survey of almost 1000 business owners found 21 per cent believed conditions would improve in the next six months, 43 per cent expected conditions to stay the same, and 36 per cent believed conditions would deteriorate.
Overall, levels of business confidence were similar to the last two quarters. But twice as many business owners believed conditions would deteriorate compared with this time last year.
Auckland Chamber of Commerce chief executive Michael Barnett said a shortage of skilled labour was the biggest factor affecting business growth. Forty-five per cent of businesses said they were having trouble finding skilled staff, while 20 per cent were having trouble finding even unskilled staff.
Barnett said businesses were having to drop prices to compete. This added to rising fuel, wage and interest costs, were making growth difficult.
"[Businesses] will have to sacrifice some of their profits ... but of course all that means is you're depriving yourself of an opportunity for growth."
Barnett said those hoping to expand their business would find fewer options to access cash on the money market since the finance company crashes.
His advice to businesses was to watch debtors closely and invest in retaining people and skills.
