Fuel Prices Scare Businesses

in Featured by Jon C — May 17, 2011 at 10:37 am | 4 comments

The rising cost of fuel has become the number one “pressure point” on NZ businesses, according to the latest MYOB Business Monitor report, released today.

42% of the more than 1000 wide-ranging business owners surveyed say fuel prices will put considerable pressure on their business over the next 12 months.

MYOB says this is the highest pressure point score ever recorded in its surveys which began in 2009.

Owners of transport and warehouse companies (74%) and agriculture, forestry and fishing businesses (59%) are the most concerned about the impact on their businesses.
The RWC 2011, which is supposed to bring enormous economic benefits to New Zealand, gets the thumbs down.
Business owners say they’re not expecting much of an economic injection from the Rugby World Cup, as confidence in a near term recovery all but collapses. In fact their view of NZ’s economy is grim:

Less than a quarter expect the NZ economy to recover in the next 12 months  - only 5% think it might recover before the end of the year. This means business owners are at their most pessimistic since the surveys began. 71% expect it will take more than a year to recover - the figure was 46% when they were asked a year ago. Micro and medium businesses (up to 299 employees) are especially worried.

But a third (31%) of businesses are at least reporting more work or sales in the next quarter – up from 26% at the end of 2010.

One other interesting figure: 31% of business owners are dissatisfied with the Auckland Council .

Tags: MYOB peak oil petrol prices