Business confidence across Auckland improves
Nearly half of employers in Auckland said they plan to hire new staff this year amid improving business confidence.
The latest Business Confidence Survey from the Auckland Business Chamber found that 45.96% of employers in the city are expecting to hire new staff within the next 12 months.
Another 37% said they are not expecting to increase headcount, while 7.66% said they plan on reducing their number of employees.
The findings come as 27.31% of organisations observed that the country's labour market has been improving in the past year. In fact, 52% of the respondents said current constraints in the labour market do not have any impact on their business.
Overall business confidence across Auckland has improved among employers, according to the report, with 44% reporting negative business sentiment, down from 45%.
There was also a decrease in the number of employers that reported a decrease in revenue (48%), as well as those expecting revenue to remain flat or decline (46%).
"Business confidence has improved slightly, with fewer businesses reporting negative sentiment. At the same time, underperformance and revenue pressures have eased, showing signs of resilience in tough conditions," said Simon Bridges, CEO of the Auckland Business Chamber, in a statement.
Meanwhile, the report found that only 44% of employers are expecting New Zealand's economic performance to improve over the next 12 months, down from 51%.
They also expect costs to rise over the next 12 months (76%). Their other business concerns include:
Consumer confidence and demand (53%)
Productivity and growth: (40%)
Cash flow (35%)
International trade and geopolitical risks (27%)
Inflationary pressure and rising interest rates (27%)
"Inflation has reemerged as a key concern. While inflation concerns are lower than August's peak of 43%, cost pressures remain a significant issue," Bridges said.
He warned that trade and geopolitical risks will continue to affect businesses as global uncertainties persist.
"Alongside these, domestic economic performance will continue to shape business conditions well into 2025," he said.
