Business confidence is flat according to the latest Tauranga Chamber of Commerce survey, but there are hopes the Rugby World Cup will kick off a recovery.
The new survey shows 53 per cent of business people surveyed expected their own businesses will improve over the next six months.
Chamber CEO Max Mason says the result is similar to the previous quarter, but a slight lift on six months ago.
The latest survey shows 37 per cent of respondents expect conditions in their business to stay the same but 10 per cent expect it would deteriorate.
Max says he is pleased more than half of all businesses are expecting an improvement given the generally tough economic conditions.
'Yes, conditions are still tough and most business people are having to grind it out, and are showing great courage and resilience. But things will improve as they always do.”
Max says the high currency against the US dollar was particularly challenging for exporters who were seeing profit disappear.
'I just think it's going to be a slow and steady recovery,” he says.
'At least it's more than half (who are optimists) and it's a good foundation for future growth.”
Max hopes the thousands of tourists coming to Tauranga over the RWC will be a springboard for the recovery.
The survey shows respondents have higher confidence in their owner businesses than the general economy (32 per cent believe the economy will improve over the next six months, while 51 per cent think it will not change).
'It seems quite inconsistent to have a big 21 per cent difference between their belief that conditions will improve in their own business compared to the wider New Zealand economy when the respondents collectively represent the wider economy.”
Max thinks the general negativity is simply a reflection of ongoing pessimism and believes the firms own expectations are more accurate as 'they have a greater knowledge of their own operations and markets”.



4 comments
yeah right!
Posted on 02-09-2011 12:55 | By wreck1080
World cup is a short lived blip. Once the world cup visitors return home,the economy may even go into hangover. However, this wont stop the council from putting my rates up by 10% next year again . Mine have gone up 30% since mid 2009 with no change in circumstances.
Ignoranus
Posted on 02-09-2011 13:42 | By SpeakUp
The 'she'll be right” punditry, in its parroting groupthink stupidity (validated by precisely zero truthful analysis, by zero global awareness and by even less historic and monetary knowledge), set forth the thesis that 'things will improve as they always do.” A most asinine statement, especially in reference to GDP/rugby. The CoC halls are indeed filled with ignorami. Quite likely HAVE to be by definition of ‘growth economy' with finite resources, ransacked finances, growing wealth disparity, parasitic governance and public stupefaction called 'education' ensuring eternal debt serfdom. Wonder where you are, what you say, in 5 years.
ShutUp
Posted on 02-09-2011 14:29 | By gregor
Give the negativity a rest. A thing called the internet and a myriad of television channels provide a huge amount of information (education) compared to 20 years ago. What an absurd statement to say people have "zero global awareness" I think it's safe to assume most people know the state of the US and some European economies, but NZ is in a quite different economic situation. Show some leadership and put out some encouragement and motivation, you don't do anyone a favour by promoting the negative, in fact quite the opposite. Finite resources??? are you in NZ? This country has an absurd amount of natural resources. Wind, water, hydro, thermal, oil, gold etc etc. We are very lucky that if, as you assume, things are destined to get very bad we have these resources left to exploit, and a relatively small population that can benefit from them. The same cannot be said for the most of the developed world.
NZers ARE BETTER THAN THAT
Posted on 03-09-2011 09:40 | By PLONKER
They are on average well aware of the overseas issues and mess that especially affects the northern hemisphere countries: EU + USA. To say otherwise is a bit silly really.
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