CityBeat - Te Waha Nui Online

Slowing economy expected to continue

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by Michelle King

Business confidence is still low as we head into Christmas.

A recent survey of 750 New Zealand businesses shows that businesses confidence is still low with cautious optimism for the festive season.

The Auckland Chamber of Commerce, Business Confidence survey hit a 12 month low in June 2007 and has remained flat as businesses look ahead into the next 6 months.

While this is an improvement on the June quarter findings, business confidence is still low.

Less than 20 per cent of businesses expect the economy to improve in the next 6 months.

Auckland Chamber of Commerce chief executive, Michael Barnett says the findings reflect anticipations of a stronger period ahead in the lead up to Christmas and relief from the United States Federal Reserve decision to cut interest rates.

Most businesses look to double or triple sales over the festive season, but less than 50% of businesses expect their own prospects to improve over the next six months.

The slowdown in the economy follows three increases in interest rates this year, domestic credit crisis and the global slowdown from the sub prime housing crisis.

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