Taranaki business outlook positive

Taranaki firms say the region is back in business.

More than half of businesses – 56 percent – now believe that economic conditions will improve over the next 12 months.

A survey on business confidence at the same time last year found just 10 percent had a positive outlook.

And a further 35.6 percent now believe economic conditions will remain the same, with just 6.3 percent of businesses believing business conditions will deteriorate.

Venture Taranaki, which conducted the latest six-monthly business survey, says the results indicate a growing spirit of confidence within Taranaki's business community.

"In the six months since the last survey we've seen a dramatic shift in mood," said VT chief executive Stuart Trundle.

"Optimists now outweigh pessimists by the most significant margin in the survey's 10-year history.

"Within specific industries there has also been a marked reversal of outlook, though slightly less pronounced – 50 percent of Taranaki businesses now see the coming 12 months as improving."

The six-monthly survey, which monitors Taranaki firms' economic confidence, involved 150 businesses from throughout the region.

While there is a widespread feeling that nationally business conditions are beginning to improve, many of the survey respondents are not confident they are in a position to relax, however. Only 43.9 percent of Taranaki businesses say the worst of the recession is over, while another 37.6 percent say the recession is currently at its low point.

And even fewer businesses – 41.4 percent – reckon the recession has passed in Taranaki. This underlines the perception in Taranaki that the local economy was impacted by the recession several months after the national economy, says VT.

"Our region's businesses have stated that recovery from the recession will be led at nationwide level. This reflects the region's export focus, and the impact of the wider national economy on Taranaki,`" said Mr Trundle.

The signs of recovery are good for Taranaki businesses, he added. "Half of the region's businesses expect sales to pick up in the next six months, and we have seen a marked increase in the region's positivity and confidence as a result."

This message is also reinforced via business views on what the key issues for 2010 will be. The survey results show that while a number of businesses are still concerned with the impacts of the recession through interest rates, exchange rates, growth and business sustainability, many others are looking at more positive issues.

"While we may not be leading the nation in terms of economic recovery, Taranaki again has a positive outlook and its businesses are looking to the future and well positioned to leverage growth in other parts of the country," said Mr Trundle.

- © Fairfax NZ News