New Zealand Businesses Show Growth

17 July 2012 01:00 - Lucy Williams

New Zealand Businesses Show Growth

Businesses in New Zealand’s economic capital Auckland have begun to show signs of expansion however the same cannot be said for the country’s other major cities including Wellington and Christchurch. Positive surveys have been released showing two consecutive quarters of revenue growth for Auckland businesses but on the whole New Zealand continues its struggle against the economic crisis.

Despite the evident growth witnessed in Auckland, the rest of the country sees business owners lower their revenue expectations with many businesses believing economic recovery is still not plausible within the foreseeable future. Yet the latest survey released reported a net 11 percent of revenue sales, an increase from April. Auckland businesses which saw the most growth were sole traders and companies concerned with manufacturing, with approximately 15 percent of businesses recording an increase in revenue. Nevertheless some companies continue to face difficulties including businesses ranging from agriculture to construction and trade.

Unpredictable trading conditions can be put down to a struggling Australian economy and weak Chinese data which had direct effect upon Australian and New Zealand exports. A net 15 percent of Auckland exporters reported a decline in revenue.

The ongoing global economic crisis continues to affect Auckland and New Zealand as a whole. Auckland businesses saw confidence levels drop as optimism regarding short-term economic recovery dwindled.