Organisations are not contracting, but also not growing strongly
More than three in four businesses across New Zealand are hiring selectively amid moderate confidence across the country, according to a new poll.
The inaugural NZ Chambers of Commerce Business and Economy Survey saw the participation of more than 20 chambers of commerce in the country, representing tens of thousands of businesses across all major sectors.
The poll found that 78.95% of employers are "selectively hiring", while 10.53% have implemented a hiring freeze.
A further five per cent said they are hiring across most sectors, while a similar percentage shared that they are reducing staff.
These hiring plans come as 60% of employers rated the current level of business confidence as "moderate".
Another 30% of employers said confidence is low, while 10% said confidence is high.
Simon Bridges, CEO of the Auckland Business Chamber, said the vast majority of businesses are "waiting," where they are not contracting but not growing strongly.
"We're seeing a sense of fatigue after several difficult years," Bridges said in a statement.
"Rising costs, soft demand, and uncertainty are weighing down confidence. Everyone is hoping the strength we're seeing in exports flows through to more regions of the economy."
Two-tier economy emerging
According to the report, regions with a rural backbone like Canterbury, Southland, and Manawatū-Whanganui, as well as the sub-region Queenstown Lakes, are showing more optimism than others.
"We're certainly seeing some cautious optimism in the Queenstown Lakes economy, fuelled by strong tourism growth in the South," said Sharon Fifield, CEO of the Queenstown Business Chamber of Commerce, in a statement.
"This however comes with its challenges and the need for infrastructure to keep pace with growth as currently it's holding back local productivity and confidence."
On the other hand, urban centres like Auckland are underperforming. Some regional areas like Nelson-Tasman and Northland are also seeing weak demand and cost pressures, according to the report.
Factors influencing confidence
Global uncertainty has emerged as a recurring factor influencing business confidence, according to the report.
"Confidence is tempered by concerns over weak demand, cost pressures, and global uncertainty," one of the respondents said.
Another respondent said the "uncertainty around the 'Trump' factor continues."
US President Donald Trump has taxed goods coming from New Zealand at 15%, as part of his widespread tariff threats across the world.
Patrick McKibbin, CEO of the Hutt Valley Chamber of Commerce, said exporters are watching these global developments very closely.
"Geopolitical tensions are creating real nervousness, and the uncertainty is definitely influencing confidence here," McKibbin said.
