The Otago Chamber of Commerce released its March survey last week showing expectations the New Zealand business situation would improve had fallen again to 22.31%, down from 24.66% in December.
Expectations the situation will deteriorate further during the next six months had gone down to 28.57% from 30.14% in the last quarter. A larger proportion believe it will stay the same.
Chamber chief executive Dougal McGowan told the Otago Daily Times the survey results had followed the trend seen in the last three or four reports.
"There is still come concern about the effect of Government policies on the economy. Some are worried about interest rates rising. And the threat of trade wars have others on edge."
Expectations about respondents’ own business situations had deteriorated and business were finding it harder to get skilled and specialist staff than three months ago.The indications for profitability to fall had increased.
Those thinking profitability would fall dropped to 30.2% from 36.62% in December, he said.
The rise in the minimum wage was a major concern for some Otago businesses. The minimum wage rose on April 1 and the Government intended taking it to $20.
Businesses indicated their highest concern for the next six months was still staff costs.
Asked whether business owners should be in business if they could not afford to pay workers $16.50 an hour, Mr McGowan said small retailers and hospitality outlets were being hit by rising prices and rising wages.
Current low inflation was likely to rise as prices and wages increased and expectations of higher wages from those earning $70,000 and more rose following the rise in the minimum wage.
The chamber was concerned some members would not take on extra staff to expand their operations, meaning a rise in the region’s unemployment, he said. Otago businesses had indicated the most limiting factors for them to expand their business was still demand, followed by labour.
Fewer members than usual took part in the survey, something Mr McGowan attributed to it being distributed during a particularly busy time in the city, at the same time as the Easter break.
