Business confidence falls

Auckland businesses are upbeat about the general business environment, but confidence in their own situation continues to fall.

Just under half (46 per cent) of the more than 750 businesses surveyed believe the general business environment will pick up in the next six months, up four per cent on March results.

At the same time just 53 per cent of businesses surveyed saw their own business situation improving during the next six months, down almost 10 per cent on September last year, and down two per cent from March figures.

Chamber chief executive Michael Barnett said the findings reflected a business community that was cautiously confident in an improved outlook for business.

However not to the extent that any improvement was showing up in their own businesses, he said.

"In a word, confidence this year is not being translated into profits, and employment intentions are not as strong as earlier this year," he said.

Among other findings, both full time and part time employment is predicted to decrease compared to previous months, and 85 per cent of respondents are expecting interest rates to rise during the next year, compared to 65 per cent who held this view last December.

The high number of businesses predicting interest rates will increase in coming months, coupled with the low employment intentions, suggest businesses will remain cautious by cutting costs rather than positioning for growth, Barnett said.

- Herald Online