Auckland Business Confidence Falls Further Ahead Of Budget 2025 - May 2025 Confidence Survey
The latest Auckland Business Chamber confidence survey shows business conditions in Auckland remain incredibly tough, with most sentiment indicators worsening compared to the previous quarter.
Key Findings:
Business Confidence:
47% report negative business sentiment, up from 44%.
Economic Performance:
38% expect New Zealand's economic performance to improve over the next 12 months, down from 44%.
Business Performance:
50% report underperformance against expectations, up from 45%.
Business Revenue:
49% report a decrease in revenue compared to the previous year, up slightly from 48%.
54% expect revenue to remain flat or decline over the next 12 months, up from 46%.
Business Costs:
78% expect costs to rise over the next 12 months, up from 76%.
61% have increased or plan to increase their prices, up slightly from 60%.
Top Business Concerns:
Consumer confidence and demand: 66%, up from 53%.
International trade and geopolitical risks: 42% up from 27%
Productivity and growth: 39%, down slightly from 40%.
Cash flow: 37%, up from 35%.
Inflationary pressure and interest rates: 26%, down slightly from 27%.
'After a terrible and prolonged period, businesspeople were hoping for better days by now and so-called 'green shoots.' But the reality is they don't see that yet,' says Simon Bridges, CEO of the Auckland Business Chamber.
'Some of that is the 'Trump effect,' with geopolitics continuing to rise as a top concern. But with less than a week until Budget 2025, domestic settings also assume huge significance.
'Austerity won't be enough from the government next Thursday. That sort of Budget alone will simply prolong the economic pain.
'While fiscal restraint is important, the Auckland business community also needs some serious evidence of the 'Going for Growth' agenda the government speaks about. Whether this is tax or regulatory relief, or some other policy silver linings, will be Finance Minister Willis' prerogative. But one thing is for sure: light at the end of the tunnel is essential,' said Mr Bridges.
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