Difficulties finding staff with the right skills and cashflow issues seem to be creating a drag on what most had hoped is a recovering economy, says Tauranga Chamber of Commerce chief executive Dave Burnett.

Tauranga Chamber of Commerce chief executive Dave Burnett.

A business confidence survey undertaken with almost 300 businesses in the Northland and Central North Island regions last week indicates business confidence peaked in February.

While there are continuing high levels of business confidence, there are some warnings.

'A major concern has to be that at a time of growth, firms are having difficulty recruiting people with the rights skills,” says Dave.

'Knowing we have an election ahead and that further hikes in interest rates are imminent, businesses need to be purposeful in their planning and should be thinking what actions might be required to maintain current levels of growth.

'We have managed the cost-cutting cycle well, but need to focus now on how we manage growth.”

The survey finds a net 57 per cent of firms believe the general situation will improve over the next six months compared to the record 69 per cent of that view in February this year.

A total of 30 per cent of businesses reported having difficulty finding the right employees with the right skills, an increase of five per cent since February.

Most business surveyed - 87 per cent - expect interest rates to rise in the next six months.

Firms surveyed also think that for the next three months employment expectations are down, along with hours to be worked. Average selling prices are up but profitability is predicted to decrease next quarter.