Confidence down—IER

Press, 8 December 1987, Page 29

Confidence down—IER

PA Wellington Business confidence has slipped slightly in the Wellington region, according to a quarterly opinion survey by the Institute of Economic Research. However, the survey, the latest in a series started in 1983, showed the trend was less widespread in the Wellington region than at the national level. The survey revealed differences in the performances of each business sector. While intended new investments showed an increase over the previous June quarter survey,

there was a marked fall in business confidence and intended new investment in the Wellington region’s service sector. The survey found employment in the Wellington region declined during the three months ended September. This retrenchment was also evident in a reduction in the amount of overtime being worked. Apart from the service sector, domestic trading activity remained relatively weak, the survey found. Insufficient demand appeared to be placing the greatest constraint on expansion of output and employment in

the Wellington region. Further labour market retrenchment was expected in all sectors other than services during the December quarter. The survey also found the sharemarket fall might have important ramifications for employment in financial services and demand for local products. The survey, which covered 120 firms in the region, provided an analysis for each business sector (manufacturing, building, merchants and services) as well as an overview of expectations for the region.