North Canterbury Business Opinion Surveys
The North Canterbury Business Opinion Survey is undertaken every six months (April and October) and gives an indication of the mood of our business community. This survey is broadly in line with the NZIER New Zealand Business Opinion Survey which allows us to make comparisons between North Canterbury and New Zealand.
The latest survey took place in October 2024 and shows a sudden increase in business confidence reported by businesses in Waimakariri and Hurunui. The largest increase was about the New Zealand business situation for which confidence increased by 50%. This makes it the most positive our business owners have been since October 2013. Confidence also increased for the individual businesses, their industries and their districts.
This is not reflected in business profitability which continues to decline. Our businesses have been reporting a net decline since April 2020 when covid hit our communities, and we have not seen an increase in overall profitability yet. The main influence in this is the cost of doing business which continues to rise for almost all our businesses. Businesses have had to raise their prices in response, but those we talk to say that they cannot raise their prices enough to mitigate the cost of doing business without losing sales. As such, the decreasing inflation numbers are likely to be a major factor in businesses feeling that 2025 will be a better year.
Finding staff is now a lot easier than it has been in the past with businesses reporting a smoother time in recruiting skilled, semi-skilled and unskilled staff.
Investment intentions remain subdued, particularly investment intentions for buildings.
Overall, the underlying numbers for North Canterbury businesses remain concerning, but growing optimism is a good indicator of better times ahead.
Waimakariri Quarterly Infometrics Report
Commissioned by the Waimakariri District Council, Infometrics provides us with quarterly reports detailing what the economic situation in the Waimakariri is. These reports provide many details on employment, building consents, gross domestic product, accommodation, house sales and prices, and retail and vehicle sales.
The latest Infometrics report for the month ended December 2024 for Waimakariri has been released.
As was reflected in our business opinion survey from October, there are signs that the local economy is starting to look up but that conditions are still tough for many of our businesses. A real positive for our semi-rural community is that dairy and meat prices are projected to perform much better. Dairy payouts look to increase to $312m, up $73m from the previous season. Sheep meat and beef prices have also seen increases.
Positive indicators:
Negative indicators:
