Waikato businesses continue to struggle
Waikato is struggling with a stalling recovery, posting a -16 per cent fall in revenues in the June quarter, according to new survey results.
The MYOB Business Monitor survey showed Waikato second among four regions whose businesses recorded revenue falls in the quarter, while economic engine room Auckland sparks to life.
Over the past 12 months, a net 11 per cent of Auckland businesses showed increased earnings, the first time two consecutive quarters of positive growth have been reported in the region since the survey started in June 2009.
Wellington businesses had the best quarter, with a net 16 per cent reporting increased earnings.
But around the rest of the country, a net -6 per cent of regional businesses saw revenues fall. In Christchurch, where growth has been slowed by the sluggish start to the rebuild, 40 per cent of businesses saw revenues reduced for a net -12 per cent result.
Regions grappling the most with the downturn were Manawatu, net -18 per cent revenue, Waikato (-16 per cent), Hawkes Bay (-13 per cent) and Bay of Plenty (-9 per cent).
MYOB general manager Julian Smith said the pace of recovery in the regions is being affected by performance of primary production and tourism.
"What we are seeing in the earnings for the primary sector in particular, is an industry that remains under pressure from rising transport costs and sluggish export markets, while the key tourism sectors - retail and hospitality - are also struggling."
The primary and retail/hospitality sectors saw a net -7 per cent fall in earnings over the past 12 months.
The MYOB survey covers more than 1000 business owners across a range of small and emdium businesses. MYOB is one of New Zealand's biggest business management software providers.
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