Simon Bridges: Auckland Business Chamber CEO on the reports claiming business confidence is on the up

New surveys show Auckland business confidence is on the up, with reports indicating businesses are feeling less pessimistic ahead of the new year.

Auckland Business Chamber CEO Simon Bridges says the latest November survey shows the city isn't 'out of the woods' but it's no longer 'stuck in the darkest part of the forest'.

Bridges says there's room for the economy to improve, but the OCR's coming down and farmers are making more money - and things are feeling more hopeful.

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Episode Transcript

Speaker 1 (00:00):
It looks like Auckland businesses are turning a corner with
confidence on the up. Negative confidence ratings have fallen twenty points.
They are now at forty four. Forty four percent. More
than half of them expect the New Zealand economy to improve.
In Simon Bridges, the Auckland Business Chamber chief executives with
us Allo Simon.

Speaker 2 (00:15):
Hi evening here that so, I mean these numbers are
god a like.

Speaker 1 (00:18):
You've got negative confidence going from sixty four down to
forty four. You've got neutral sentiment climbing up twelve points,
however many to thirty nine. You've got fifty four percent
of them now saying that the New Zealand economy is
going to improve. That's the one that's up twelve points.
What's caused this?

Speaker 2 (00:33):
Yeah, I look, I think they are good. I think
you know, it's no rockstar economy, no one's saying that.
But I think what you're seeing is future sort of
beliefs and intentions from business people in Auckland, and the
economy is that it's looking better. And I suppose you say, well,
what's causing that? I mean it's fundamentals, isn't it. I mean,
you've got around the rest of the country. Farmers with

(00:53):
a big payout from Fonterra, record price as a low dollar,
So that's sort of at a level, got to start
filtering through. You've got the ocr coming down. It's gone
from being a tough gig to being you know, quite
stimulatory on the economy. And I think they can just see,
you know, whether it's some of the stuff the government
has been doing, or I think they've picked up the
pace a bit on their policy instead of other initiatives.

(01:16):
For Auckland, it's just starting to feel a bit better
and they can see that over the next year it
is going to get a bit better. So, you know,
some of the numbers right now they're still not great.
But as I say forward intentions, you know, a clear
majority see the economy improving over the next year. They
see revenue up over the next year. They're going to
make more investment over the next year.

Speaker 1 (01:37):
What are the things that are still concerning.

Speaker 2 (01:39):
Them though, Oh well, there's definitely things that consume them. Look,
it's a sense of lack of demand, of consumer sentiment
that that's still pretty poor. It's stuff around productivy and growth.
They're not sort of seeing that years it's their own
cash flow, it's their own ability to pay you off
the back of that kind of lack of consumer confidence

(02:00):
and lack of growth. And then it's down the list
a little, but it's still inflation that's there. It's still
a sense that the world in terms of trade and
geopolitics is pretty tough.

Speaker 1 (02:11):
What's your feeling do you think that next year is
going to be a rawer? You know, come, let's say
election time next year. Are we going to be absolutely
going for it or is it still going to be
a hard grind?

Speaker 2 (02:21):
Well, I've written a terrific column on this Afrano Sullivan
and enz ed me for next week. I have to say,
and just to give you a preview on it, I
think what I would say is it's I'm realistically optimistic, right, So, well,
what I mean is, you know, I think some of
the bank economists are talking three plus percent. I don't
buy that. I mean, there's a number of factors there

(02:41):
that say it to be a bit tough than that.
You've got a close election, which in the end actually
means a period where people kind of pull back a bit.
You've got the potential stock market crash in the United
States at some time. You've got a bunch of other factors.
But I still say on those fundamentals I mentioned earlier
on a CRL and an international convention, see to some
of these things. It is slowly going to grind its

(03:03):
way out. But I think, for heaven, wait for twenty seven.

Speaker 1 (03:08):
Are you going to tell me how you got onto
the snake pitt Metallica or not? I text you and
you have left it on red.

Speaker 2 (03:15):
What I'm going to tell you is it was outstanding.
I mean, it was like a three D moving movie.
You could see these guys sweating, you could see their facials,
and I could tell you, for some old codges, they
were really enjoying it, and they brought their best to this.
I think the other thing I was just saying off here, Laura,
is I don't know what I expected. I wondered if
it would be kind of bogans and leather vests and

(03:38):
here suits. It was a decidedly middle class affair. You know.
So if you were in that snake pit, you're of
a certain age, a certain vintage, and you weren't necessarily
a boke.

Speaker 1 (03:49):
Well hold on, because you were there. You were there.
Tiger Whitey's he was there, and the drummer from Tool
was there.

Speaker 2 (03:55):
He was he was about a meter from me. I
didn't know him from Adam. I'm not a big Tool guy,
and they obviously played in the weekend. But the chap
next to me pointed out that was drummer of Tool,
and suddenly I felt like I was quite kind of
v v I P. Well, yeah, I mean it was amazing.

Speaker 1 (04:08):
I looked at the list and went, what the hell
are you doing there? But I mean, having said that
you you can play the drums like reasonably, okay, so
you know.

Speaker 2 (04:16):
You're based on m I would love to tell you
that that's that's the basis on which I was at
the snake pit. But no, I mean, in the end,
that's none of your business here there. I'm a private
citizen who's entitled to be there. That's more like doing
it very very much.

Speaker 1 (04:32):
The sass I want from you, Simon. I love it. Now. Listen, Simon,
I kind of m' be like, oh, do I do
this or do I not do this? I'm going to
do this. Yeah, do they go for Chris Bishop?

Speaker 2 (04:44):
Uh lot coming? The Primeister is saying, you know, no way,
and it's it's all good stuff. And and you know
I take them as weird in that. I mean, what
I would say is I had that ship for years
on end from a more experienced, harder press gallery. That
or I say, it's not massive fun, It doesn't help
a party, and you know they need to sort it

(05:06):
out quite quickly so that you know, the youngder is
going to get back to focusing on the policies and
that growth that we're looking for in twenty six twelves.

Speaker 1 (05:14):
Right, yeah, okay, I'm loving the sassy Breen Simon. Thank you.
Simon Bridget's Chief executive Auckland Business Chamber.

Speaker 2 (05:20):
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