Wellington is leading the way as small firms across the country prepare for "take off" with a sharp rise in business optimism, according to ANZ’s quarterly Business Micro Scope survey of small firms.
Profit expectations have doubled in the three months to June as small firms across the country gear up for greater activity with a sharp lift in investment and hiring intentions.
Expectations for the unemployment rate have hit the lowest level among small firms since survey data was first collected in 1999.
“Small firms are preparing for take off,” said Fred Ohlsson, Managing Director of ANZ Business Banking.
"Small business customers in Wellington, in particular, tell us they see much better times ahead. They have weathered the storm, come through fitter and stronger, and are now ready to take their business to the next level."
The most upbeat Wellington firms are those in technology and other 'smart' industries.
Ohlsson said ANZ had recently taken on four more business Banking staff in the Capital to handle the growth.
"This is a great sign for Wellington, and we’re seeing a similar lift in mood emerging in other regions.
"As the Canterbury rebuild gears up, small firms are eyeing the growth potential with optimism in that region now at its highest since the 2010 earthquake. We expect this to keep improving as reconstruction gets into full swing,” Ohlsson said.
Wellington's proportion of optimistic companies hit a net +22%, up from +17% in March, followed by Canterbury (+21.6%) and the rest of the South Island (+20%). Auckland lifted to +14%, from +11%.
Own activity and hiring intentions are at their highest since September 2011. Profit expectations more than doubled, hitting a 12-year high among intermediate-sized firms (with 6-20 staff). Investment intentions have hit a seven-year high.
Construction is still the most upbeat sector nationally. Services joined construction in recording record-high sentiment. Agriculture bounced back from drought with the biggest sector improvement, from -2% to +10%.
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