Politics Overtakes Economy as Top Worry for NZ Businesses

New Zealand businesses are struggling to plan ahead due to increasing political uncertainty in the run-up to this year's general election, according to a recent survey by independent economist Tony Alexander.

The Mint Business Insights survey found that concerns about politics have surpassed worries about the economy and customer demand for the first time, with a record 49% of businesses citing politics as their top concern.

This is despite interest rate concerns easing for three consecutive months, although further tightening may be on the horizon with the Reserve Bank's upcoming Monetary Policy Statement in September.

The survey also revealed that labour shortages are emerging, with a net 17% of businesses reporting increased difficulty sourcing staff this month, up from 13% in July and the strongest such reading since the survey began. This is particularly notable given the unemployment rate remains at 5.6%.