Source: BusinessNZ
The survey identifies three main financial factors affecting business confidence as input prices/lack of profitability, interest rates, and inflation.
The two other main concerns are the level and quality of government spending and labour productivity.
Other notable business concerns include electricity price increases, roading infrastructure, and local government policies impacting on economic development.
Most respondents are intending to authorise only the same or less capital expenditure over the coming year compared with the year to date, although intending to increase expenditure on IT.
Most respondents want the corporate tax rate reduced, to be competitive with Australian tax rates.
BusinessNZ Advocacy Director Catherine Beard says the results paint a picture of the environment facing many businesses, where profitability has been depleted by rising input costs resulting from inflation.
The inclusion of concerns about government spending in the top five concerns alongside financial challenges is significant, Catherine Beard says.
“A key picture emerging from the survey is of businesses affected by the inflationary results of past government spending.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
