Valley businesses confident about their own success

Hutt News, October 27, 2015

Hutt Valley business confidence in New Zealand’s economy has dipped, according to a survey conducted by the Hutt Valley chamber of Commerce late last month.

Chief Executive Mark Futter, said of the results: “It’s a mixed outlook, but Hutt Valley businesses are still feeling confident about their own business, and it’s a fairly even spread as to whether the national economy will decline or improve.”

Responses from the 201 businesses that responded to the on-line survey showed generally that expectations and confidence has tightened.  While dipping into negative territory, little change to the national business situation is anticipated by respondents with a net 2 per cent expecting the situation to improve over the next six months, compared to a net 17.4 per cent in June and 39.5 per cent in March. (The percentages used are net, meaning the balance of sentiment, positive minus negative responses.)

Just over 20 percent of respondents expected the national business situation to improve, compared with 33.1 per cent in June and 47.2 per cent in March.  A total of 22.8 per cent of respondents to deteriorate, compared to 15.7 per cent in June and 7.7 per cent in March.

Hutt Valley business confidence in their own firms has also dipped slightly, but remains high compared with other expectations.  A net 41.2% of business respondents said they expected their own business situation to improve compared to 44.9 per cent in June and 54 per cent in March.

Expectations around business investment were mixed.  A net -10.6 per cent of businesses expect to invest more in buildings over 12 months, compared to 6.1 per cent in June.  A net 11 per cent of businesses expect to invest more in plant machinery, compared to a net 10.4 per cent in June and 8.14 per cent in March.

Business hiring expectations remain positive.  A net 7.2 per cent of respondents expect to hire more fulltime staff, and a net 15 per cent expect to hire more part time staff.

Just on 28 per cent expected their costs would be higher in the next three months, excluding normal season changes.