Clutha businesses are far more optimistic about the economic climate locally than the national scene, a survey reveals.
The six-monthly Enterprise Clutha business confidence survey shows 20% of respondents believe the Clutha business situation will improve in the next six months, with the majority predicting little change for the first half of 2009.
But when it comes to looking at the New Zealand economy as a whole, there is less cause for hope, with just over two-thirds of respondents (67%) believing things will get worse before they get better.
Despite this gloom, 63% of those who completed the survey still feel it is a good time to be in business.
Back in March, the last survey revealed demand was the biggest inhibitor for businesses in the district. Enterprise Clutha executive officer Linda Moore said the key factors limiting businesses now were supply, finance and labour, the latest survey showed.
"It is still difficult to find skilled staff, especially in the area of trades and also attracting staff to live and work in the Clutha district."
The national unemployment rate is expected to rise in the coming months as companies are hit by the global economic recession.
A summary of the survey includes:
• 43% believe interest rates will fall in the next six months.
• Investment in business is picked to slow down.
• Profitability rose for just 9% of respondents, with 49% noting no change and 29% claiming their profits were down.
• The outlook for the next six months suggests costs will increase and businesses expect to work longer hours to achieve the same result.
