Canterbury Businesses Show Resilience Amid Economic Pressures

Canterbury’s business community is demonstrating resilience in the face of ongoing economic pressures. According to the latest quarterly survey from Business Canterbury conducted in August 2023, 64% of local firms anticipate a strengthening local economy over the next year. This optimism comes despite challenges, as more than half of the surveyed businesses—55%—plan to hire additional staff, while 59% intend to invest in property, plant, or equipment in the upcoming 12 months.

The survey also revealed a decline in confidence regarding the government’s ability to manage the economy effectively. Leeann Watson, chief executive of Business Canterbury, acknowledged the mixed sentiments among businesses. “What certainly hasn’t helped is that really stubborn consumer confidence and demand,” she noted. Watson expressed hope that upcoming changes in fixed-term mortgages—affecting approximately 60% of homeowners—would boost consumer confidence and spending, particularly benefiting sectors like bars, restaurants, and retailers that have faced significant challenges.

Despite these hurdles, Watson highlighted that the overall sentiment among businesses remains optimistic. “While still just below long-term averages for key business confidence metrics, overall positivity reflects how Canterbury operates. We don’t ride the booms and busts like other main centres, and right now, that stability is our not-so-secret weapon,” she stated.

In Canterbury, the establishment of new businesses is occurring at twice the national rate. The region’s GDP is slightly positive, contrasting with a nearly 1% retraction faced by the rest of New Zealand. Watson emphasized that Canterbury is currently the most attractive place in the country for individuals seeking to live and work, although she cautioned that confidence alone will not sustain the region’s economic momentum.

“While intent to grow is strong, businesses can’t do it alone,” Watson asserted. She called for “growth-ready conditions” shaped by both central and local government, especially as local elections are underway, and a general election approaches. Watson urged decision-makers to prioritize policies that foster investment, hiring, and innovation to ensure sustained growth for Canterbury’s businesses.

The findings from Business Canterbury’s survey reflect a complex economic landscape where optimism coexists with notable challenges. As the region navigates these pressures, the commitment to proactive investment and supportive policies will be crucial in maintaining the positive outlook among local firms.