Hawke's Bay Firms expect fall in profits, says survey

Hawke's Bay businesses' confidence is inconsistent and pessimistic, according to the March Quarterly Survey of Business Opinion run by the NZ Institute of Economic Research.
The survey revealed the majority of respondents expected a fall in business profitability over the next three months.
Hawke's Bay Chamber of Commerce CEO Murray Douglas said that at the end of last year there had been a slight lift in overall optimism - but the situation had changed.
"A lack of sales, followed a long way behind by a lack of finance and labour, remains the main factor adversely impacting business performance in Hawke's Bay," Mr Douglas said.
He said the survey indicated some positives for this year's June quarter. "There are some small positives, with employment levels within the surveyed businesses increasing slightly overall during the first three months of this year reversing the trend since 2004 when employment had declined.
"A few Bay businesses are anticipating a small rise in employment during the second quarter of 2011 and, reflecting some of our migration issues, regional firms are now reporting more difficultly in meeting their skilled labour needs and [finding it] slightly easier to meet their unskilled labour needs."
The Hawke's Bay survey results covered 200 regional businesses operating in different industry sectors.