Business confidence in the nation’s capital is surging, according to data from the Wellington Chamber of Commerce for the December quarter.
Wellington Chamber CEO Hayley Horan says that while the broader economic backdrop remains challenging, firms have built resilience and are beginning to see more possibilities on the horizon.
“What we’re hearing from Wellington businesses is realistic optimism.
“The most striking change is in how businesses view their own performance,” she says.
In the September quarter, business confidence was a meagre 15 per cent, but in the subsequent three months, that nearly trebled to 43.9 per cent. Half of respondents expect their financial position to improve over the next year, while only about 6 per cent anticipate a decline.
That said, the survey was completed before the US and Israel commenced military attacks on Iran, which has driven a massive hike in crude oil prices to around US$88 at the time of writing.
Rising costs remain a concern of most businesses, says Horan, with more than three in four businesses expecting that pressure to continue through this year.
However, Horan says Wellington’s underlying strengths of a highly skilled workforce and a strong private sector were underpinning the confidence.
“There’s no glossing over the challenges of the past few years,” Horan says. “But we are seeing a steady and genuine lift in confidence. Many organisations are investing and hiring again, even if with a little more caution.”
Wellington Mayor Andrew Little welcomed the results, saying that when local businesses thrive, the City of Wellington follow suit.
“It has been a tough few years, and we’re not out of the woods yet, but I’m pleased to see confidence returning,” says Little.
“The challenge remains to keep building on recent successes, maintain positive momentum and grow the local economy. While I’m pleased to see positive sentiment toward my new leadership, this is only the beginning of a long road ahead to lift Wellington’s economy to generate growth and high-value jobs for our people.”
