{"id":437619,"date":"2026-05-21T02:06:09","date_gmt":"2026-05-21T02:06:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/437619\/"},"modified":"2026-05-21T02:06:09","modified_gmt":"2026-05-21T02:06:09","slug":"business-performance-sentiment-remains-near-record-low-bdo-report","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/437619\/","title":{"rendered":"Business performance sentiment remains near record low \u2013 BDO report"},"content":{"rendered":"<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Retail (19%), tourism (36%) and construction (42%) business leaders were the least positive about their current financial position.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Construction and retail business owners were feeling the pressure of market conditions most acutely, with cost-of-living inflation and softer consumer demand undoubtedly squeezing margins.<\/p>\n<p><img  alt=\"BDO advisory partner Kimberley Symon. Photo \/ BDO\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>BDO advisory partner Kimberley Symon. Photo \/ BDO<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">About 40% of business leaders in these sectors were positive about their overall business performance, the lowest reading among major sectors and a notable decline since the September survey.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">In addition, 19% of construction business leaders and 3% of retail business leaders felt they were unlikely to meet financial obligations, or become insolvent, in the next 12 months.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">In sharp contrast, agribusiness and M\u0101ori business leaders were the most positive about their current financial performance (both 54%).<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Agribusiness (80%) and M\u0101ori businesses leaders (77%) were the most positive about the outlook with stronger export conditions for agricultural products, including dairy, benefiting their rural communities.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Overall, the report indicated 7% more <a href=\"https:\/\/www.nzherald.co.nz\/business\/going-backwards-fresh-statsnz-data-show-post-covid-productivity-decline-persists\/premium\/DVPYWUROZZF5LA6XEKYFK2KV44\/\" target=\"_blank\" rel=\"noreferrer nofollow noopener\" title=\"https:\/\/www.nzherald.co.nz\/business\/going-backwards-fresh-statsnz-data-show-post-covid-productivity-decline-persists\/premium\/DVPYWUROZZF5LA6XEKYFK2KV44\/\">business leaders were feeling positive about their financial performance<\/a> (42% in April 2026 versus 35% in September 2025).<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">\u201cThis is only the second time an improvement in this measure has been recorded,\u201d she said.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Auckland business leaders were the most positive about their current financial performance (57%), compared with (39%) in the rest of the North Island and (18%) South Island.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">External economic (27%) and political factors (28%) were the two issues businesses felt least positive about, among the 19 attributes rated.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Looking ahead six months, business leaders expected to continue feeling least positive about economic and political issues, followed by cashflow.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">However, labour supply and cyber risk were expected to move into their five lowest-scoring issues.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">South Island business leaders were the least positive about political, economic and financial factors.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">However, more South Island business leaders (37%) expected their net profit margins to increase over the next 12 months.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">\u201cBusiness leaders are even more positive when looking ahead six months, with 49% nationally expecting to feel positive regarding their business financial performance,\u201d Symon said.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">\u201cThe latest BPI survey findings suggest some businesses are starting to see early signs of financial resilience after several difficult years, but market conditions remain fragile and the international macroeconomic environment is still highly uncertain.<\/p>\n<p><img  alt=\"The BDO report shows improved financial resilience in some sectors, but construction and retail remain under pressure.&#10;\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>The BDO report shows improved financial resilience in some sectors, but construction and retail remain under pressure.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">\u201cBusiness conditions are moving at different speeds across regions and market segments, with business performance, investment and hiring intentions closely tied to economic exposure, inflationary impacts and industry mix.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">\u201cIt\u2019s clear that many businesses are presently riding out the fuel-price pressures by passing on higher prices to consumers. Looking ahead over the next 12 months, nearly half of business leaders (46%) expect net profit margins to hold steady \u2013 and 29% expect margins to improve.\u201d<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Still, two-thirds of business leaders (64%) expected rising fuel prices to hit net profit margins over the next 12 months, indicating they did not think they could pass on all cost increases.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Tourism business leaders had improved confidence in their outlook at 52%.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">Mid-market businesses were holding up better than small businesses, with their added scale offering a further buffer against rising costs and tighter margins.<\/p>\n<p class=\"nAzlsRkyMsZOvyL\" style=\"display:none\">\u2013 RNZ<\/p>\n","protected":false},"excerpt":{"rendered":"Retail (19%), tourism (36%) and construction (42%) business leaders were the least positive about their current financial position.&hellip;\n","protected":false},"author":2,"featured_media":437620,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[29343,138,17576,3180,111,43,139,21353,69,45125,6777,1974,10715,1560,48992],"class_list":["post-437619","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-bdo","tag-business","tag-low","tag-near","tag-new-zealand","tag-news","tag-newzealand","tag-nona","tag-nz","tag-pelletier","tag-performance","tag-record","tag-remains","tag-report","tag-sentiment"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/437619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=437619"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/437619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/437620"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=437619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=437619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=437619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}