Survey finding of lower business confidence queried

New Zealand business confidence has slipped to below the global average in the past six months while other mature economies around the world are gaining confidence, according to a new international survey.

The global Regus Business Confidence Index shows New Zealand’s confidence has dropped four points to 112 in the six months, to October, one point below the global average of 113 points.

The latest results were based on a survey of more than 20,000 senior executives across 95 countries, including 64 respondents from New Zealand businesses.

But, the survey by the global workplace provider contradicts the finding of the recent benchmark surveys including the quarterly ANZ Business Outlook survey, which showed New Zealand business confidence was at its highest in the September quarter since 1999 with almost half the companies that responded expecting better times ahead.

The NZIER Quarterly Survey of Business Opinion for the September quarter also showed general business optimism up slightly to 32 per cent positive, from 30 per cent in the June survey. The survey also found the economy looked to be heading for 3 per cent annual growth, with the economy rebounding in the September quarter, pointing to more jobs ahead.

According to the Regus survey New Zealand companies of all sizes were looking to maximise efficiency due to an uncertain economic outlook.

Nearly 40 per cent of New Zea- land respondents said they wanted better staff retention.

Kiwi firms said they would prioritise cost-cutting measures, from talent retention to flexible workspace, to gain maximum advantage from existing assets and expand in a fast and flexible manner, Regus said.

Regus Asia-Pacific director John Henderson said: ‘‘This research shows that the top priorities for Kiwi businesses are reducing services, driving a better return on investment in marketing, and ensuring that staff are sticking around.’’

While the survey found there was a drop in New Zealand business confidence it also found the number of companies reporting revenue growth had risen to 44 per cent from 40 per cent for the six months to April.

Regus said 23 per cent of Kiwi businesses that responded also planned to reduce fixed office space.

Employers and Manufacturers Association chief executive Kim Campbell said the survey’s changes were insignificant and out-of-sync with other business confidence data.