But labour constraint concerns on see decline: report
Cost pressures are dragging down the confidence of businesses in Canterbury, as they seek "immediate action" from the government on addressing economic issues.
The latest Quarterly Canterbury Business Survey revealed that 40% of businesses are impacted by rising costs and 69% are expecting these costs to continue going up over the next 12 months.
"Business confidence has plummeted over the last three months, clearly signalling the toll that cost pressures are taking," said Leeann Watson, chief executive of Business Canterbury.
"On a net basis, only 19% of businesses are positive about future financial performance — a significant decline from 34% in the previous quarter and 44% six months ago."
This is also attributed to growing consumer demand concerns, with 54% of businesses saying they are worried about it, up from the 27% last year.
Despite this, nearly three in four businesses (72%) are confident in their ability to manage disruption, according to the report.
It comes amid an "influx of migration and students at the University of Canterbury, a promising winter tourism season, and a resilient primary sector," according to Watson.
Less than 20% of businesses are reporting labour market constraints as a top concern for them, down from almost 60% in February 2023.
Source: Business Canterbury
Amid these findings, Watson said it remains clear that "immediate action is required by the government to support our businesses and the wider economy."
"Businesses said clearly that spending on infrastructure should be the priority in Budget 2024, with healthcare, law and order, and education identified as major Budget line items they would like to see prioritised. This is what businesses believe will help get us back on track to drive our economy forward," Watson said.
According to the chief executive, 65% of businesses are confident that the Budget 2024 will positively impact the economy.
"The focus must be on delivering a clear roadmap away from inflationary conditions, balanced with targeted funding in critical areas that support sustainable economic growth," Watson said.
