Seventy-five per cent of businesses operating under COVID-19 Alert Level 3 said they are extremely uncertain about the next three to six months.
And many businesses believe things will get much worse before they get better.
“The business community knows things will not go back to normal, but they don’t know what that means at the moment,” said John Milford, Wellington Chamber of Commerce and Business Central chief executive.
The COVID-19 Alert Level in the country has been lifted to Level 3, but according to a study conducted by the Wellington Chamber of Commerce and Business Central, just 17 per cent of respondents said their business will be operating as usual during this time.
Seventy-five per cent of respondents said their business will operate under capacity.
“Many remain unable to operate anywhere near full capacity,” Milford said. “Just 7 per cent of businesses now remain closed, down from 22 per cent at Alert Level 4. However, in contrast only an additional four per cent of businesses will be back to operating at full capacity.”
Milford said businesses’ belief that the worst is yet to come is reinforced by their expected earnings over the next three to six months. A net 64 per cent of respondents believe their earnings will be worse than their current level.
“We asked the same question in our business confidence survey last month and had a net 14 per cent of businesses believe their earnings would be worse,” according to Milford.
“A lack of confidence in their own business earnings means businesses won’t be investing or trying to grow, they’re going to hunker down and try to survive through the coming months.”
When asked what further support businesses will need over the next three to six months, nearly half (46 per cent) were unsure or needed more advice and clarity from the government.
Fifty per cent of respondents said they will need more financial support over the next three to six months, with suggestions ranging from wage subsidy extensions, to rent relief and forms of tax payment deferrals and rebates.
“Seventy-six per cent of our respondents have used the wage subsidy to help get them through the past five weeks and it will continue to help as things start to pick up again,” Milford said.
But, he said, the subsidy is due to run out in a couple of pay cycles and ongoing support will be needed to make sure businesses are back to operating in the new normal.
