Small businesses in the South Island outside Canterbury, as well as those in Wellington, are heading into this year upbeat about their prospects.
The ANZ’s quarterly Business Micro Scope survey of small firms does not break the South Island down into regions, other than single out Canterbury.
However, the results from other recent surveys, and comments from the Otago Chamber of Commerce, indicate Otago is brimming full of confidence for the year ahead, albeit with some concerns about skill shortages and accommodation for workers in Queenstown and Central Otago.
The MicroScope survey showed small businesses finished last year with confidence at a two-year high.
A net 20% of respondents — up from 17% in September — say they were confident about the business environment in the year ahead. Within the group, confidence of micro firms with up to five employees rose five points to 14% and intermediate firms held steady on 26.
The composite measure lifted to 20% during the December quarter. The composite measure was based on firms’ activity outlook, hiring, investment and profit expectations — all of which improved in the quarter.
"It was a storming finish to a good year for New Zealand’s small businesses," ANZ retail and business banking general manager Andrew Webster said.
"If confidence plays out, 2017 will be an excellent year for small businesses, with a net 34% expecting a lift in activity for their business over the next 12 months."
Wellington led the way with 32%, followed by the South Island outside of Canterbury on 31%. Auckland continued to climb with 21% and Canterbury recorded 15%.
The construction sector, up seven points to 30%, led the way in growth confidence. Services was up two points to 27% and manufacturing was up 5% to 24%. Agriculture reversed its September slide to pick up 11 points to 1.4%.
The lack of skilled staff, competition and regulation were at the top of concerns for business owners, Mr Webster said.
