Regions doing the “heavy lifting” in national small business sales growth are those with a strong agricultural base, such as Southland, Xero says. Xero released its “Small Business Insights” report last week. In a statement, Aotearoa New Zealand country manager Bridget Snelling said small business sales in New Zealand rose 8.6% year-on-year in the June quarter. This result was the strongest in nearly four years and the first quarter since December 2022 where sales growth had outpaced the historical average of 6.2% year-on-year. Agriculture sales rose 16.3% year-on-year, consistent with recent government reporting on strong agricultural exports, and was the single biggest driver of the national sales result. Mrs Snelling said the numbers point to a two-speed economy. “On the surface this looks like an outstanding quarter for small business sales, and in agriculture it genuinely was but once you look industry by industry, it’s clear the recovery isn’t being felt evenly. “Agriculture is doing the heavy lifting, while sectors exposed to discretionary spending like retail and hospitality are still finding conditions tough.” The regional data shows sales in Southland rose 9.6% year-on-year, she said. “All regions with a strong agricultural base recorded exceptional sales growth.”
