Slump in business confidence alarming but unsurprising

The findings of the latest NZIER Quarterly Survey of Business Opinion (QSBO) – that business confidence has fallen markedly – should come as no surprise, National Spokesperson for Small Business, Andrew Bayly says.

“When businesses don’t feel confident, that’s when they stop growing and investing in plant, equipment and people. This is the last thing New Zealand needs.

“As we head into 2022, supporting our small businesses – the powerhouse of our economy – is essential. We know many struggled last year with the ongoing lockdowns, but access to labour remains a key concern for many business owners.

“Additionally, most businesses have been facing significant supply chain issues and cost pressures continue to rise, especially across building/construction and manufacturing.

“It’s not surprising that business confidence has slumped, given the number of policies introduced by the Labour Government that have made business operations far more difficult.

“The recent changes to the Credit Contracts and Consumer Finance Act (CCCFA) have made access to credit far harder, meaning those small business owners that rely on raising a mortgage to fund their business will face an increasingly onerous task.

“National will work constructively with the Government to ensure that vulnerable borrowers continue to be protected, but also ensure people can access credit without undue delay.”