Business confidence has improved since late 2023 but remains a mixed bag. This mirrors what we are seeing across our own business.As we have returned from summer holidays, there seems a more optimistic attitude within our client base. This is supported by the recent ANZ Business Outlook survey, which shows an improvement month by month.

High net immigration is helping overall economic activity, but on a per-capita basis our GDP fell in 2023.

Despite strong population growth, residential construction remains challenged – it’s hard for developers to make projects stack up at current construction and project financing costs.The change in government has created uncertainty about major infrastructure projects for large civil operators.Our hope is that lowering funding costs, less construction cost inflation, and population growth will aid development confidence in 2024 and that the new government will progress with infrastructure projects.

Our primary sector is challenged. One only needs to look at recent weak tractor sale numbers to see that farmers are being very cautious about their spending!Sheep farmers are doing it particularly tough, with lamb prices depressed due to weak global demand and strong supply. Dairy prices and log prices have thankfully improved from 2023 lows and while they have some way to go to offset cost increases in those sectors, any improvement has been welcome!

Overall, we sense that 2024 will see a modest bounce back from the pessimism that prevailed during mid to late 2023. We look forward to working with businesses to help them fund their growth, or improve their debt structure, throughout 2024. Lender appetite for transactions remain high in most sectors, and we are very well position to assist our client base obtain competitive finance structures.