Coasties may find a silver lining in the latest Auckland Business Chamber confidence survey, which presents a mixed picture of the local economic landscape.

Despite ongoing challenges, early indications suggest a cautious but growing optimism among businesses.

The survey shows that 66% of businesses currently report negative confidence, a slight rise from 65% in May.

This reflects continued concerns about the business environment. However, there is notable improvement in economic performance expectations.

Now, 43% of businesses anticipate better economic conditions in the next year, up significantly from 29% in May.

Business performance remains a concern, with 56% of businesses indicating they are not meeting their expectations, an increase from 49% previously.

Revenue challenges persist as well, with 59% of businesses reporting lower revenues compared to last year, up from 55% in May.

Despite this, the outlook for revenue shows some improvement, with a decrease in the percentage expecting revenue to decline or stay flat over the coming year.

On the cost front, 72% of businesses expect rising expenses in the next 12 months, down from 77% in May.

Additionally, 60% of businesses have raised or plan to raise their prices, a decrease from 64% in May.

The top concerns among businesses include consumer confidence and demand, with 65% noting this issue, up from 63% in May.

Inflationary pressures and interest rates are less of a worry now, with 43% expressing concerns, down from 62%.

Productivity and growth challenges are noted by 41% of businesses, an increase from 37%, while 37% are concerned about cash flow, up from 36%.

Simon Bridges, CEO of the Auckland Business Chamber, commented on the findings: “Business confidence remains under pressure, with 66% of businesses reporting a negative outlook. However, there are positive signs amid the cautious sentiment—especially in economic performance expectations, which have seen a sharp increase from 29% in May to 43% now. Additionally, concerns over inflationary pressure and interest rates have decreased significantly from 62% in May to 43% now.”

Despite facing revenue pressures and underperformance, the reduction in cost and inflation concerns suggests a gradual adaptation to the economic climate.

Businesses are showing signs of resilience, indicating that the worst might be behind them.