NZTIF Business Survey to 31 March 2025

The results of our business survey of members for the quarter to 31 March 2025 indicate a feeling that while the next three months are going to be subdued, possibly with the onset of winter, the longer-term twelve-month outlook is more positive with 75% of respondents believing that general business conditions will have improved.  Notably however, 17% believe that conditions will have worsened twelve months out.   In fact  the level of confidence in improved business conditions is lower this time around than the level reported in our survey of 30 September 2024 when 91% of respondents believed that business conditions will have improved twelve months out.

In respect of the three months ahead, none of our respondents believe that things will improve, the majority, 67%, hold the view that things will remain unchanged.

More specifically for timber, most respondents expect sales volumes will improve in the year ahead but that is tempered with only a minority of respondents believing that timber prices will improve.  Most believe prices will remain unchanged.

Timber production costs are expected to continue to rise according to 66% of respondents.  Respondents are reasonably bullish on profitability and seem to be dedicated to maintaining investment in plant and equipment even in difficult times with 41% planning a greater level of investment and 33% planning no change in investment levels.