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Auckland business confidence hits 12-month low

Auckland business confidence has hit what the chamber of commerce says is a "surprising" 12-month low.

The latest Auckland Chamber of Commerce quarterly business confidence survey, using responses from almost 1000 business owners and managers, shows net confidence in the country's business situation is 11%.

That is the lowest point for 12 months, and compares to 16% in the last quarter and 12% in May.

Chamber chief executive Michael Barnett says he is surprised at the results.

"It seems uncertainty in the economy is delaying businesses making decisions to grow and employ and yet that uncertainty is unnecessary," he says in a statement.

“We have so many major projects in Auckland that could be accelerated and used to stimulate our economy.

"Instead, we have businesses that have trimmed down while waiting for a recovery that has not arrived and now they are looking at further cuts to their businesses."

Finding skilled staff is difficult, particularly in the technology/communications and retail sectors, the survey suggests, while other business owners remain bullish.

“The survey shows a definite trend towards businesses tightening the belt and continuing to reduce expenditure.”

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Comments and questions

well, well , maybe the engine room problems of the Provinces are starting to be felt on the 1st class deck!!!
Are, Aucklanders sensing the smoke coming from the bowels of the economy and the noticable slowing of the grand ship" New Zealand."

I wonder when Captain Jonkey and first Engineer Bill English actually acknowledge the smoke, let alone look to put out the fire and chart a new course for the grand ship "New Zealand"

Gaffer, you may have noticed the riots in Europe in the last few days. These riots are a direct result of Governments spending too much time proping up economies and "creating" conditions for subsidised business (if not downright owned by the government) and bankrupting their country. I think I'll stick with common sense rather than socialist fantasy, after all, socialism has consistently been a failure.

Per chance we are seeing right wing free markets ideology also now failing?

In Vino Veritas - you completly missed my point, as recently as yesterday Bill English was saying no worries all is good on the home front.

Plainly it is not, My point was when will the Government accept that we do have some structural economic problems and imbalances and start to actually address them?

Denial and spin is all we have been getting from this Government

Yes why are there riots in Europe?, mass unemployment and public disatisfaction with circumstances caused by the fact there is little hope in the short term for a better "Lot in life" for those 'rioters'

Why has this occurred - Governments blind to the obvious until there is calaminty and there are minimal options left except slash and burn
- cf Bill English and John Key blind tp the obvious
how long until the riots here?
oh and by the way I am any thing but a socalist - a sefl employed right wing grafter who had my money on the line for 42 years
And still here because through reading the economic climate and adapting to changing circumstances
Denial of difficulty leads to bankrupcy = Europe
QED again

The economy is slowing - higher unemployment, lower retail sales. I think it is not a surprise confidence has declined, the survey was of business people operating in the real world every day.

A suprise Mr Barnett? I never had you down for a head in the sand type. The public are being thifty because they are wary of how they are going to pay for the existing let alone some of the grand spending projects our central & local government is poised to inflict on the rate/tax payers.

Take a good look at were the Europe financial experiment has got their tax payers. Beware of Bureaucrat’s with great spending plans, they will end up with the money / job security and the rate/tax payer will end up with the bill for a very long time.

As long as people have to borrow more and more for overpriced Auckand's housing, they won't have much money left to spend on non esentials.
The only way to get people spending in shops is to get Auckland's overpriced houses down.

National's predictibly irrational economic policy at work, little or no growth, rising unemployment, European style austerity measures, pandering to the IMF and foreign banks. Wake up NZ and see the things that are clearly not working anywhere else in the world and won't work here.

NZ’s economic outlook beats a number of other EOCD countries across a number of metrics. As horrific and life-changing the recent events of the Christchurch earthquakes have been – they will be NZ Inc’s economic saviour in the short/medium –term – especially as Aussie’s 2-speed economy slows dramatically.

Talking with specialist Engineering recruiters in Aussie on both coasts, they all say since the mining tax has taken effect, the big players in the mining / resource sector are deferring multi-billion dollar projects and taking their toys to go play in Mongolia’s sand box – where there’s no crippling unions, crippling mining tax’s or cumbersome red tape. Anecdotal evidence by these “canaries in the coal mine” tell me that even local Civil Engineers with 10+ local experience are struggling to find work – as there’s very little happening anywhere.

Factor the “feel good” factor of an approaching summer, Christmas just around the corner and things will be mostly ok until Christmas has past – but then the New Year will see some major problems emerge onto everyone’s radar – because the early warning signs in Aussie’s construction sector are emerging … and it’s gonna get ugly real fast next year – especially if economic conditions in Europe, the US or elsewhere get even worse…

Saying that – Merry Christmas everyone!

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