Dramatic fall in business confidence

Business confidence in the Auckland region has fallen dramatically, with pessimism about the economy hitting a two-year high, according to a new study.

The Auckland Chamber of Commerce survey of its members showed pessimists outnumbered optimists by more than five to one.

Only 8 per cent of respondents predicted the business situation would improve over the next six months, whereas 46 per cent expected it to deteriorate. This was a sharp reversal from December, when the optimists were in the majority.

Chamber of Commerce chief executive Michael Barnett said the findings showed problems with Auckland's infrastructure were hampering growth and reinforced the need for a regional economic development agency.