Economic Trends and Business Survey March 2011

Napier City Economic Trends and Outlook March 2011 Update Report.

This report provides an analysis of historical and more recent key economic indicator trends within the Napier City area primarily for the 2010 calendar year, the period for which the latest local economic indicator results are available. The information for the report is sourced mainly from Statistics New Zealand, Infometrics economic consultancy (Wellington), financial institutions, local organisations and the Napier City Council. Growth comparisons with the wider Hawke's Bay region and the country as a whole are included in the analysis, where appropriate. Also included in the report is an assessment of the local and national economic outlook for the next year. The report has been prepared for the Napier City Council by contracted local economic consultancy Company, Economic Solutions Ltd, Napier.

Trend Summary

• Positive economic indicator results for Napier City for the 2010 calendar year included population growth of just under 1%, increased volume of new dwellings and commercial/ industrial buildings consented, slight increase in house prices, increased actual retail sales, 19% rise in new motor vehicle registrations and a small gain in electricity consumption levels. Those indicators that fell during the year included the volume of building alterations consented and overall visitor activity levels.
• Total employment in Napier rose 1.8% last year. The rate of unemployment in the City in December last year, at 6.7%, was noticeably down on the December 2009 quarter figure.
• Port of Napier international export tonnages have increased by 24% since 2008, with import tonnages increasing by 39%. Export growth at the Port has been driven by logs, timber, woodchips and dairying whilst import tonnages have been driven by fertiliser and containerised consumer goods.
• The Napier City Council’s March 2011 survey of Napier business confidence indicated that the majority of local firms were currently experiencing only ‘average’ trading performances; however, on balance the firms were still optimistic about business conditions for their enterprises over the coming year.
• The City has seen a very significant rise in cruise ship visitor activity over the past five years, which is set to continue over the next two years.
• The City recorded an overall economic growth gain of 3.4% last year, following the negative growth rate of close to 2% in 2009.
• Local industry sectors that have grown most in Napier over the period of major international economic downturn since 2007 have included electricity/gas/water provision, health and community services, financial and insurance services, cultural and recreational services and personal/ household services.
• Recipient numbers in all MSD benefit categories increased a little last year especially unemployment.

Results of Napier Business Confidence Survey Undertaken March 2011

This report provides the results of the March 2011 formal survey of local enterprises on business confidence, performance and related issues in Napier City.

The six-monthly surveys are carried out for the Napier City Council by APR Consultants in Rotorua, a specialist survey company which has administered a number of similar and other surveys in the past for the Council and other organisations in Hawke's Bay.

The latest survey covered 200 Napier-based businesses, representative of all the main industry groups operating in the City. The businesses were contacted directly for their responses, by telephone.

The respondent firms were questioned on five main themes, these being:

• Business confidence for 2011/2012
• Current business trading performance
• Business performance influences
• Recruiting skilled staff
• Napier City Council related issues
• Recent and expected business growth

The survey results are referred to the Napier City Council's Economic Development Department for active followup, where appropriate.