Confidence in Tauranga business has dropped, according to a new survey.
Nearly 300 businesses in the central North Island and Northland indicated that while there was a continuing high level of confidence, there were also warnings.
Tauranga Chamber of Commerce chief executive Dave Burnett said that increased interest rates, difficultiesfinding staff with the right skills and cash flow issues all seemed to be creating a drag on what most had hoped was a recovering economy.
Key findings included a total 57 per cent of firms believed the general situation would improve over the next six months compared to the record 69 per cent of this view in February this year.
Other findings were that 30 per cent of businesses were having difficulty finding the right employees with the right skills - an increase of 5 per cent since February - and 87 per cent of respondents expected interest rates to rise over the next 12 months.
Firms surveyed indicated that for the next three months employment expectations were down along with hours to be worked; average selling prices were up but profitability predicted to decrease next quarter.
Mr Burnett said a major concern was that at a time of growth firms were having difficulty recruiting people with the rights skills.
Knowing we have an election ahead and that further hikes in interest rates are imminent, businesses need to be purposeful in their planning and should be thinking what actions might be required to maintain current levels of growth, he said.
