The poll,conducted mostly after last month’s increase in official interest rates,found business confidence in the state is near historic lows.
Belrose businessman Peter Morris,owner of wholesale distribution business Axis Toys and Gifts,said “every single rate rise” is having a noticeable effect on demand for the toys and gifts he sells.
“We’re seeing the threshold of spending getting smaller,” he said. “So instead of a $50 purchase we’re getting a $30 purchase,and instead of people getting two presents for their kids they’re getting one.
“People are just not spending to the same extent as what they were previously.”
Loading
The small business,which has six employees,has also faced rising costs,especially for shipping. However,Morris has no plans to reduce staff numbers.
“There has been such a swing in fortunes ever since COVID began. It feels like we’re on a perpetual trampoline,and you don’t know which way it’s going to bounce,” Morris said. “When you add the rate rise factor it just increases the uncertainty. Small businesses are being badly affected.”