Northland business owners lose confidence

Business confidence in Northland has plummeted, with more business owners believing the situation will worsen as the economy stalls.

A Northland Chamber of Commerce survey of 773 businesses revealed confidence levels sank 3 per cent compared with August.

In August, 37 per cent of Northland businesses believed the trading environment would improve over the next six months, but that number has decreased to 34 per cent. Chamber chief executive Tony Collins said 19 per cent believed the general situation would worsen, compared with 13 per cent in August.

These were small movements, but the survey still indicated a trend in lowering business confidence, he said.

While many businesses hoped the Rugby World Cup would stimulate the economy, they now feel the benefits of hosting the event, apart from tourism and hospitality, have not been realised.

Mr Collins said after the tournament, businesses felt there was little to get excited about other than the possibility of a modest recovery, and any benefits the Christchurch rebuild might offer the economy.

Lack of finance and lower consumer spending were the biggest factors inhibiting business growth, he said.

About 25 per cent of businesses now find it harder to get skilled staff than in the past, while 37 per cent believe hours worked by employees will increase in the next quarter.

Mr Collins said 75 per cent believed profitability would be the same or better in the next quarter compared with 64 per cent on last quarter. The survey result reflected the confused global environment, especially in Europe, he said.