Optimism reigns for six months ahead

Auckland business owners are increasingly optimistic about the next six months, despite growing evidence of an economic slowdown.

In its latest survey of more than 800 business respondents, the Auckland Chamber of Commerce found business confidence had risen for the third successive quarter.

They were asked to assess the general business situation and the prospects of their own business.

Just 25 per cent of firms believed conditions for business would get worse in the next six months, compared with 40 per cent in the previous June survey, 49 per cent in March and 59 per cent in December.

Nineteen per cent believed conditions would improve, compared with 12 per cent in June, 8 per cent in March and just 7 per cent in December.

Asked how they saw their own business situation over the next six months, 48 per cent predicted that they would improve compared with 35 per cent last December.

Similarly, just 15 per cent believed their situation would get worse, down from 18 per cent in June, 21 per cent in March and 25 per cent in the survey last December

The result suggested that chamber members were defying the negative talk that persisted about the economy, said chamber chief executive Michael Barnett.

"The evidence shows that an increasing number of businesses have put negativity to one side and are taking their own decisions to move forward."

On employment, the survey indicated a continuing tough and competitive market with 39 per cent of firms believing it would continue to be harder to employ the right people with the right skills, compared with 37 per cent in the June and March surveys and 42 per cent last December.

The confidence did not appear to be fuelled by false hopes that interest rates will fall any time soon. Just 10 per cent believed interest rates would drop in the next 12 months, the same as in June. In March, 24 per cent thought this, in December 3 per cent.