KEY POINTS:
Most businesses are expecting a deterioration in the general business situation in New Zealand over the next six months, latest survey results show.
An Auckland Chamber of Commerce survey of more than 1000 companies found 57 per cent of respondents believe the business climate will deteriorate, against 14 per cent who believe it will improve.
But it was still better than the previous quarter's results, when 64 per cent picked a deterioration and only 9 per cent an improvement.
Businesses from all industry sectors completed the survey over a 48-hour period last week, providing an up-to-date snapshot of what is front of mind for Auckland companies.
Their responses confirmed a slowing economy, with 50 per cent citing demand as the factor most limiting their ability to expand, and 70 per cent expecting costs to continue to rise. But only 34 per cent believed they will be able to increase prices and 46 per cent expect profitability to be down.
Over a quarter of those surveyed indicated a reduced intention to invest in buildings, and over a third a reduced investment in machinery.
Chamber chief executive Michael Barnett said there were glimmers of hope in the result. Firms were finding it easier to attract skilled staff, and 36 per cent believed interest rates will fall over the next 12 months, compared with 8 per cent last quarter.
