February 21, 2026

#business: BUSINESS MOOD SURGES: Confidence Hits Highest Level Since 2022

Matthew Tukaki Posted On February 21, 2026

Business confidence has rebounded sharply, recording its strongest level since tracking began in 2022, with negative sentiment plunging and optimism nearly doubling in just three months.

The latest Auckland Business Chamber survey for February shows a decisive turnaround in business mood after what many described as a prolonged period of economic strain. Just 25 percent of businesses now rate overall confidence as negative or very negative, down from 44 percent in November. At the same time, positive sentiment has jumped from 16 percent to 32 percent.

More than half of businesses expect the economy to improve over the next 12 months, broadly consistent with November’s outlook. The improved sentiment is now beginning to reflect in actual trading conditions.

The proportion of businesses reporting performance below expectations has dropped 11 points, from 47 percent to 36 percent. Revenue figures are also strengthening. Businesses reporting year-on-year revenue declines have fallen from 50 percent to 41 percent, while those reporting revenue growth have increased from 30 percent to 38 percent. More than half of respondents expect revenue to rise over the next year.

Despite the lift in confidence, hiring intentions have eased slightly. Forty-one percent of businesses plan to hire staff, down six points from November. The figures suggest firms are optimistic about the direction of the economy but remain cautious about expanding headcount.

Cost pressures remain a major factor. Sixty-six percent of businesses have raised or plan to raise prices, up five points since November. Seventy-eight percent still expect costs to increase, although this has eased marginally by four points. Energy affordability is improving, with fewer businesses describing energy as unaffordable, and fewer reporting customers paying late.

Inflation and interest rates have re-emerged as a significant concern. The proportion of businesses citing inflationary pressure and interest rates as a top issue has jumped 15 points, from 29 percent to 44 percent, reflecting renewed uncertainty around the interest rate outlook.

Consumer confidence and demand remain the single biggest constraint on businesses, cited by 55 percent of respondents, although this is slightly lower than November’s figure. Concerns about productivity and growth have eased from 43 percent to 36 percent. Worries around cashflow and accounts payable have also edged down, as have concerns about international trade and geopolitical risks.

The February results suggest momentum is building in the business sector, but the recovery remains fragile. While sentiment has improved markedly, firms continue to navigate cost pressures, cautious hiring decisions and uncertainty around monetary policy.

The survey signals that belief is returning to the business community after several difficult years. However, sustained recovery will depend not only on improved confidence, but also on stable policy settings, disciplined fiscal management and conditions that support household spending and demand.