Reacting to the NZIER Quarterly Survey of Business Opinion, Mr McGowan said the prospect of changing government policies was affecting national business confidence.
In Otago, there were different worries and concerns.
In Dunedin, businesses were more cautious about the next six months, despite the prospects for an influx of people expected in the period.
Forsyth Barr Stadium would host artists such as Ed Sheeran, an international cricket match would be played in the city and a large tourism industry conference would be held.
In Central Otago, confidence was high as the tourism season continued ''booming''.
There had been a good start to the summer fruit season, even though labour had been in short supply, he said.
However, dry conditions were starting to affect agricultural sector confidence.
Exports out of the South from meat processors indicated lambs were being killed early in case drought hit hard, Mr McGowan said.
''Farmers are now looking to destock their properties, which will affect confidence in the sector.''
In Dunedin, house prices were still rising, giving confidence to homeowners wanting to sell. A lack of housing stock for sale was hampering activity as buyers wanting to move to the city increased, he said.
Rental owners had experienced delays in upgrading their properties to new standards because of a lack of skilled tradespeople.
Enrolments in the city's tertiary institutions were likely to rise and the University of Otago's summer school remained popular, meaning some students had stayed on instead of vacating their flats, Mr McGowan said.
One thing that had struck the chamber was the lack of wage pressure, despite all the good things happening in the region.
''It appears there are a lot of job opportunities out there but wage rises don't seem to be happening.''
That was particularly noticeable in the mid to higher wage brackets, he said.
