Canterbury Businesses Remain Optimistic Despite Economic Pressures

Canterbury’s business community is exhibiting a surprising level of optimism amidst ongoing economic pressures. According to the latest quarterly survey released by Business Canterbury in August 2023, approximately 64% of local firms anticipate a strengthening of the economy over the next year. The survey highlights a positive outlook, with more than half (55%) of businesses planning to hire staff and 59% intending to invest in property, plant, or equipment within the next twelve months.

Despite these encouraging figures, Leeann Watson, chief executive of Business Canterbury, expressed that several businesses and sectors are still facing significant challenges. “What certainly hasn’t helped is that really stubborn consumer confidence and demand,” Watson stated. She noted that around 60% of individuals with fixed-term mortgages are expected to transition off these agreements in the coming quarter, a change that could boost consumer confidence and spending.

Watson emphasized that while a majority of firms remain positive, the overall business sentiment remains just below long-term averages for key confidence metrics. “Canterbury operates differently; we don’t ride the booms and busts like other main centres, and right now, that stability is our not-so-secret weapon,” she remarked.

In Canterbury, businesses are being established at twice the national rate, and the regional GDP is slightly positive, contrasting with a nearly 1% contraction faced by the rest of New Zealand. Watson pointed out that Canterbury has become the most attractive location in the country for people to live and work. “Yet, we know confidence alone won’t carry us forever,” she cautioned.

While the intent to grow remains strong, Watson highlighted the necessity for supportive conditions fostered by both central and local government. With local elections underway and a general election approaching, she stressed the importance of prioritizing settings that facilitate investment, hiring, and innovation. “Businesses can’t do it alone,” she stated, reinforcing the collective responsibility needed to navigate current economic challenges.

As Canterbury’s businesses continue to adapt and develop, the region’s resilience and positive outlook may serve as a beacon of hope for other areas facing economic uncertainty.