New Zealand technically moved into recession following a second consecutive quarter of negative economic growth, but despite the bad news many economic experts are predicting that a deep or prolonged economic downturn is thankfully not on the radar.
The relentless increase in the Official Cash Rate (OCR) and the subsequent increases in interest rates were bound to have an effect on consumer spending and the ability for businesses to invest and grow. These inevitable consequences have now turned into reality, as consumer and business confidence remain low, resulting in household spending contracting and businesses putting the brakes on hiring and investing.
This latest reduction in household spending means that the outlook for business remains uncertain. When you add this latest challenge to the list of ongoing issues that have stifled many business’ ability to operate economically for a long time, then surviving the current economic climate just got a whole lot harder for some business owners. Indeed, many will need to rely upon the resilience they have built up over recent years to see them through this latest setback.
Most people are having to prioritise their spending as they contend with increasing loan and mortgage payments on top of the ever-increasing challenge to make ends meet as the overall cost of living continues to climb. Given the current situation I would again ask you to continue to offer your support to our local businesses by buying local.
Business North Harbour Staff Contacts
Kevin O’Leary – General Manager
Bernadette Roberts – Marketing & Events Manager
Sandra Craze – Transport Projects
Dave Loader – Crime Prevention Specialist
Kate Thorpe – Office Manager
Business North Harbour Office
Telephone: 09 968 2222
Address: Level 1, 322 Rosedale Road, Rosedale
Website : www.businessnh.org.nz
