Two-thirds report negative business confidence in Auckland: survey
Nearly half of businesses in Auckland are planning to hire new employees in the next 12 months, despite having negative business confidence amid economic headwinds.
The latest Auckland Business Chamber confidence survey revealed that 43% of business are expecting to hire new staff in the next 12 months.
Another 36% said they won't be hiring new employees, while 11% said they will be reducing headcount, according to the survey.
Source: Auckland Business Chamber
Negative business confidence
The findings come despite 65% of employers reporting negative business confidence, up from the 52% in the previous quarter.
Consumer confidence and demand has been ranked as the top business concern for employers, followed by inflationary pressure and rising interest rates, according to the survey.
Labour market constraints has been cited as a problem by 10% of employers, while eight per cent are concerned of employment issues.
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More than three in four employers also expect costs to rise over the next 12 months, as 55% of employers reported a decrease in revenue compared to the previous year.
Source: Auckland Business Chamber
Employers' economic outlook
Overall, 65% of businesses in New Zealand said they are expecting a continuation or decline in New Zealand's economic performance in the next 12 months.
"The slight improvement in the economic outlook is positive, but the notable rise in reported revenue decline and continued concerns about costs show that businesses are still in survival mode," said Simon Bridges, CEO of the Auckland Business Chamber, in a statement.
According to Bridges, rising costs, compliance burdens, and waning confidence are impacting the operations of Auckland businesses.
"While businesses are hunkering down and adjusting to the new normal, I am still realistically optimistic there is hope for improvement in the economic climate later this year and into 2025," he said.