Business owners confident of good times ahead

More than half of local companies still believe their business will improve over the next six months - even though economic conditions are undoubtedly tough, according to the Tauranga Chamber of Commerce chief executive, Max Mason,

In the latest quarterly business confidence survey, 53 per cent of the respondents believed their own business situation would improve, 37 per cent thought it would remain the same, and 10 per cent said it would deteriorate.

These figures are similar to the survey in the previous quarter, but were a step up in business confidence from previous recent quarters, Mr Mason said.

Another question in the survey asked what they think about the wider business situation in New Zealand, and only 32 per cent believed it would improve over the next six months, while 51 per cent thought it would remain the same, and 16 per cent said it would deteriorate.

"It's seems quite inconsistent to have a big 21 per cent difference between their belief that conditions will improve in their own business (53 per cent) compared with the wider New Zealand economy (37 per cent) when the respondents collectively represent the wider economy.

"This perhaps reflects a general pessimism out there, and it's hardly surprising given the steady stream of bad news over the past few years. Alternatively, there could be a perception that Tauranga business conditions are better than the national picture," said Mr Mason.

"I would be much more inclined to believe their assessment of their own firms as a truer reflection of wider business conditions because they have greater knowledge of their own operations and markets," he said.

"Yes, conditions are still tough and most business people are having to grind it out, and are showing great courage and resilience. But things will improve as they always do.

"Right now though, it's high time we had a bit of fun, and I think the Rugby World Cup will help boost our optimism," Mr Mason said.

"For a rugby mad nation, there's no better event to improve our feeling of wellbeing, and we've got a good excuse to let our hair down. Then of course, summer is on the way and economic activity always steps up," he said.