Canterbury Businesses Show Optimism Amid Economic Challenges

The business community in Canterbury is exhibiting a notable sense of optimism despite facing ongoing economic pressures. According to the latest quarterly survey released by Business Canterbury in August 2023, 64% of local firms expect the economy to strengthen over the next year. Additionally, more than half of the businesses surveyed, specifically 55%, plan to hire more staff, while 59% intend to invest in property, plant, or equipment within the coming twelve months.

Despite these positive indicators, Leeann Watson, chief executive of Business Canterbury, acknowledged that some sectors continue to experience difficulties. “What certainly hasn’t helped is that really stubborn consumer confidence and demand,” she stated. Watson expressed hope that recent changes in the mortgage market, with approximately 60% of consumers coming off fixed-term mortgages in the next quarter, could bolster consumer confidence and spending.

Optimism Amid Economic Pressures

Watson highlighted the importance of increased consumer spending for sectors such as bars, restaurants, and retailers, which have been particularly hard hit. “We really hope that will help provide that consumer confidence, which will, in turn, help give people more money in their back pockets,” she said, emphasizing the need for support in these areas.

Despite some lingering challenges, Watson noted that most firms in Canterbury remain optimistic. “While still just below long-term averages for key business confidence metrics, overall positivity reflects how Canterbury operates,” she explained. “We don’t ride the booms and busts like other main centres, and right now, that stability is our not-so-secret weapon.”

Canterbury’s business landscape is showing resilience, with new enterprises being established at double the national rate. The regional GDP remains slightly positive, contrasting with the rest of New Zealand, which faces a nearly 1% contraction. Watson remarked, “Right now, we are the most attractive place in New Zealand for people to live and work, but we know confidence alone won’t carry us forever.” She acknowledged that many businesses still face significant challenges.

The Path Forward for Growth

Watson reiterated the necessity for supportive conditions that foster growth, emphasizing that businesses cannot thrive in isolation. “We need growth-ready conditions, shaped by both central and local government,” she stated. With local elections underway and a general election on the horizon, she urged policymakers to prioritize initiatives that encourage investment, hiring, and innovation.

As the Canterbury business community navigates these economic challenges, the combination of optimism and a call for supportive measures highlights the region’s determination to foster a thriving economic environment. Watson’s insights reflect a broader sentiment among local businesses, which are looking to leverage their resilience while advocating for the necessary conditions to ensure sustainable growth.