Business performance sentiment reaches all-time low

Business leaders in New Zealand are facing a record low in business performance sentiment as the positive post-election glow fades away, giving rise to a gloomy economic outlook. According to the latest BDO Business Wellbeing Index, which surveyed over 650 business leaders, only 53 percent feel positive about their business performance, a decrease from the post-election high of 61 percent.

The survey revealed that just 41 percent of business leaders were feeling positive about their finances, with only 27 percent feeling positive about economic factors. Most business leaders expressed feeling challenged by current market conditions, with concerns about cash flow, political factors, financial performance, and workload.

While rural sector business leaders showed more positivity, retail and tourism business leaders were notably less positive due to weakening consumer demand and increased costs. The survey also found that business financials remained the leading driver of negative wellbeing, followed by economic pressures.

Despite the current challenges, business leaders were more optimistic about their future business performance, with 60 percent feeling positive when looking six months ahead. However, concerns about adopting new technologies and artificial intelligence were prevalent, with only 46 percent feeling positive about technology adoption.

Overall, the report suggests that business leaders in New Zealand are feeling stressed and overwhelmed, but are taking active steps to protect their mental health. The upcoming May budget may provide some relief and improve sentiments about the current economic environment.