Businesses in Canterbury’s Selwyn district appear to be turning a corner despite rising costs and ongoing global economic uncertainty.

Selwyn District Council’s six-monthly business survey showed profitability increased for the first time since 2020, while sales rose for the first time since 2023.

Of the 109 businesses surveyed, a net 7% reported higher profitability and a net 9% reported higher sales.

“This is the first time since the Selwyn Business Survey began in 2020 that more businesses have told us their profits are rising than falling,” economist Benje Patterson said.

​“The recovery Selwyn businesses have been forecasting for two years has finally started to show up in their results. It is shallower than they had hoped, but the direction of travel has clearly changed.”

Recent Infometrics statistics showed Selwyn’s economy grew by 3% over the past year, almost double the national rate.

“That underlying growth is giving Selwyn businesses something to have confidence about at a time when the national picture remains subdued,” Patterson said.

He said Selwyn businesses continued to recruit and invest despite rising operating costs.

“Infometrics data shows us that there was almost 5% growth in job numbers among Selwyn residents over the past year at a time when labour market conditions nationally deteriorated.”

Patterson said more businesses had been able to pass on increased operating costs, which had made a significant difference to profitability.

He said the strong rural economy and Selwyn’s growing population had also contributed to higher sales.

The survey showed businesses were optimistic but cautious about the next six months, with the November 7 General Election, continued cost increases and pressure on household spending creating uncertainty.

More Selwyn businesses are also looking to innovation to help them navigate those challenges, with 72% already investing in innovation and a further 22% considering doing so.

Mayor Lydia Gliddon said the drive to innovate was encouraging for the future.

“It’s encouraging to see local businesses embracing innovation and exploring new opportunities for growth.

“That innovation helps drive productivity, competitiveness, and a resilient local economy, but most importantly, will create more jobs for local people.”