Confidence among Auckland businesses has hit its lowest level in 12 months as concerns mount about rising interest rates, the exchange rate and skill shortages, a survey shows.
The Auckland Chamber of Commerce survey found 40 per cent of firms believed business conditions would get worse over the
next six months, up from 21 per cent who believed that in March.
Just 18 per cent of respondents believed conditions would improve, down from 27 per cent three months ago.
The chamber said the survey "painted a grim picture of confidence in free-fall fuelled by falling demand, skill shortages and deep concerns about high interest rates and the exchange rate".
Reflecting on their own businesses, 19 per cent of respondents said their own situation would get worse over the next six months, up from 11 per cent who believed that in March.
The most persistent issue affecting businesses remains the difficulty of finding suitable staff.
Some 42 per cent of businesses say it will be harder to employ people with the right skills, up from 37 per cent a year ago.
Difficulty finding unskilled workers has also increased, up to 17 per cent from 15 per cent a year ago.
The survey found 86 per cent of respondents believed interest rates would continue to rise, reducing intentions to expand and adding pressure to the bottom line.
