Invercargill MP, Penny Simmonds.
In contrast to many other parts of the country, Southland business confidence is growing.
While many other regions are feeling the pinch, there’s a real positivity around the city at present and this has been supported by a recent Southland Business Confidence Survey.
It shows a significant uplift in business confidence, in the three months to August 2025, reaching its highest level in recent years.
Confidence in the Southland economy has lifted strongly to +64 percent - up a whopping 38 percent on May 2025, while 94 percent of business owners believe Southland is heading in the right direction, with 74 percent believing the same for New Zealand.
Recent Stats NZ figures show Southland’s unemployment rate is one of the lowest in the country at 4.1 percent, in contrast to Auckland at 6.1.
While, in July, Southland was one of a few regions around the country to see an increase in the number of jobs filled, with 427 more job vacancies filled this July, than in 2024.
Regions like Auckland, Wellington, the Manawatu and Hawkes Bay all experienced a decrease in employment.
This optimism is heartening and reflects the resilience and hard work of local business owners and their staff, along with the Government creating an environment where enterprise can thrive.
Inflation has eased because the Government has stopped wasteful spending.
We have reduced inflation to 2.7 percent, down from 5.6 percent when we became the Government.
This has allowed the Reserve Bank to lower the OCR enabling business loan interest rate cuts and cheaper home mortgages.
Falling interest rates are also good for growth, allowing businesses in Southland to expand and create more jobs.
The red tape and bureaucracy, that have held business back has also been tackled by Government, with RMA reforms well underway.
Southland’s diverse economic base, which includes strong primary industries like agriculture, horticulture, forestry, and fisheries, has also provided resilience and benefitted communities.
As for the future, 67 percent of local businesses expect Southland's economy to strengthen over the next 12 months, 72 percent are planning to invest in plant, property or equipment and 62 percent are intending to hire new staff.
The Government is also continuing to focus on initiatives to strengthen the economy and that, coupled with ongoing growth in Southland, means there will likely be even more reason for optimism in the months to come.
Funded by Parliamentary Services, published by arrangement.