The results of the latest Business South Quarterly Business Survey reveals improved optimism within the Otago and Southland economies.

The survey results show positivity about future financial performance, with more people expecting to invest in their business, although consumer confidence and demand, increased compliance costs and productivity and growth are top of mind for southern businesses.

“There’s been a positive shift in how businesses are thinking about the Southern economy,” Business South chief executive Mike Collins said.

“This is reassuring given the recent tough times for businesses, especially with the uncertainty in the current global climate.”

The optimism is backed by 78 percent of businesses who believe the region is heading in the right direction – the highest it has been since the survey started two years ago. 

The results show the southern economy is starting to turn around in some sectors. Farm returns are looking more positive, there is certainty with the Dunedin hospital building, and export focused companies in the hi-tech space doing well.  

More than half of respondents (54 percent) expect the strength of the Southern economy to be stronger in 12 months’ time. 

Responses were submitted by 244 organisations (representing the full range of business sectors and sizes in the region) across Otago and Southland between February 17-27, 2025. 

The Business South’s Quarterly Business Survey was run concurrently with Business Canterbury’s Quarterly Survey, with similar themes and trends identified across both regions.

PHOTO: Supplied