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Business confidence in Canterbury is translating into increased investment and hiring, signalling broader economic momentum that could support the region’s tourism sector.
A new quarterly survey from Business Canterbury shows 76 per cent of businesses expect the regional economy to strengthen over the next 12 months, with 71 per cent planning to invest and 70 per cent expecting to hire staff.
Business Canterbury chief executive Leeann Watson says the shift marks a move from confidence to action.
“Following a period of increasing business confidence but lagging investment and hiring intentions, businesses are now reporting fuller pipelines, faster customer decision-making, and a willingness to progress projects that were previously on hold,” Leeann says.
Leeann says the results reflect the highest levels of confidence and expected investment since the survey began in July 2022.
“What we’re hearing on the ground matches this optimism. Strong customer relationships and rebounding pipelines are now translating into real spending,” she says.
Flow-on for tourism and hospitality
The lift in business activity is expected to have flow-on effects for sectors including tourism and hospitality, particularly as investment and hiring support visitor-facing services.
Increased capital spending and workforce growth may also help address capacity constraints during peak periods, including in accommodation, food and beverage, and transport.
Leeann says businesses are now beginning to move forward with projects that had previously been delayed.
“Confidence is turning into activity, with businesses beginning to green-light discretionary projects, bring investment decisions forward, and commit to hiring for growth at a rate we haven’t seen for some time,” she says.
Ongoing pressures remain
Despite the positive outlook, businesses continue to face a number of challenges, including consumer demand, productivity, compliance costs, cashflow and inflation.
Leeann says global factors, including conflict in the Middle East, are also contributing to uncertainty.
“While the results are very positive for our local economy, businesses are keeping a close eye on the headwinds they’re still navigating,” she says.
Leeann says maintaining momentum will require stable policy settings and continued investment in infrastructure.
“To lock in this momentum, we need stable policy, investment in enabling infrastructure ahead of demand, and continued work on reducing red tape so confidence can keep turning into real economic activity,” she says.
