Businesses have the shutters down, survey finds

Photo / Herald On Sunday

Business confidence slipped in September in the latest National Bank of New Zealand Business Outlook survey, suggesting businesses are in a holding pattern.

"When faced with 'unusually uncertain' times, the shutters can come down," the survey's authors said.

A net 13.5 per cent of respondents still expect general business conditions to improve in 12 month's time, down from 16.4 per cent in August and down 36 points from a peak in February.

A net 26.7 per cent expect better times for their own business over the year ahead, which is little changed from 25.7 last month.

The fact that a net 19 per cent of businesses remain positive about the outlook for their own business is still respectable but it is below the historical average of 25.

A mere net 1 per cent of firms expect to be hiring staff during the coming year, down three points on the previous month.

A net 2 percent of firms expect to be investing in building, plant and machinery over the year ahead, down a point on August's read.

"Such marginal movements are of course well within the normal volatility of the survey, but more telling has been the broad directional trend with an easing bias apparent now for four months," the report said.

"A real danger at present is that declining confidence or overly cautious stances become self-fulfilling. There are certainly reasons for caution. Just not of the wrapping in cotton wool or hibernation variety."

- NZPA