Te Waka have just released the latest Business Sentiment Survey for November 2023.
Some really pleasing news to come out of Taupo District responses in this latest survey is that local business confidence has rebounded - possibly due to the election of a new government; while the business economic outlook for the next 12 months is looking much more positive than six months ago.
Pressure on business profitability has eased, and profit expectations are stronger, with 51% of businesses expecting a profit increase in the coming 12 months. Growth expectations have also lifted, with 58% of businesses planning for growth in the next 12 months.
However concerns about the delivery of core government services remain high and political uncertainty is seen as a key barrier to growth.
Taupo District Key insights (Based on 57 Respondents)
Respondents’ net confidence in their own business has lifted significantly, with a net score of +25. Of those surveyed, 56% are confident about their business prospects over the next year, compared to 12% being neutral and 32% worried.
The current Taupo district economic outlook shows 28% of Taupo district businesses expect economic growth; however when looking at the economic outlook over the next 12 months, 40% of Taupo District businesses expect improvement.
42% of respondents expect staffing levels to increase over the next 12 months; while only 12% of Taupo district businesses expect staffing levels to decrease over the next12 months.
Pressure on business profitability has eased and profit expectations are stronger, with 51% of businesses expecting a profit increase in the coming 12 months. Growth expectations have also lifted, with 58% of businesses planning for growth in the next 12 months.
Business revenue performance over the past 12 months has produced pleasing results - with 44% of Taupo District businesses reporting an increase in business revenue.
Political uncertainty (58%), labour market pressures (54%) and inflation (46%) are still concerning for Taupo district businesses, and considered as major barriers to growth.
Views on key challenges facing the New Zealand economy and priorities for the government are: Health, Education, Inflation/Cost of Living, Crime, and Transport infrastructure)
Key regional infrastructure priorities are roading, health infrastructure, affordable housing and renewable energy.
36% of Taupo district businesses have a climate change policy/strategy in place. However, over 31% of Taupo district businesses are not actively considering the risks of climate change on their business and have no plans to develop strategies to respond.
What this means for the Waikato:
The resilience of Waikato businesses to economic challenges shows strongly in the November 2023 survey. They continue to back themselves to grow or at least maintain their position, and are positive about the future outlook for their own business, the Waikato region, and the New Zealand economy. It is pleasing to see that Waikato businesses are increasingly planning for the impact of climate change and are clear on the key infrastructure needed in the region to enable growth.
As the new Government establishes itself and focuses on delivery of its 100 day plan, the Waikato business community will be watching closely to see that their concerns about the delivery of core government services will be addressed and that investment is prioritised towards key growth enabling infrastructure.
Check out the full Taupo District and Waikato Business Sentiment Survey reports below.