Business income continues to increase in 2008

Total income for all New Zealand businesses increased to $560.8 billion for the 2008 financial year, Statistics New Zealand said today. The 7.1 percent ($37.2 billion) rise is higher than the 6.4 percent rise in total income in 2007. Income from sales of goods and services increased by 7.8 percent, to $430.1 billion in 2008, following a 4.2 percent increase in 2007.

Total expenditure increased to $513.3 billion in 2008, up 10.6 percent. The two largest components of expenditure are purchases, and salaries and wages paid to employees. Purchases and other operating expenditure increased by 8.3 percent, to $320.2 billion in 2008, following a 4.4 percent increase in 2007.
As a result of total expenditure increasing at a higher level than total income, the surplus before income tax decreased to $53.5 billion in 2008, down $11.9 billion (18.3 percent) from the 2007 financial year.
Other financial variables, and economic ratios by industry, are available in the accompanying Hot Off the Press, and at a more detailed level on request.

The Annual Enterprise Survey is New Zealand’s most comprehensive source of financial statistics, providing annual financial performance and financial position information about industry groups operating within New Zealand. The industries covered in the survey contribute approximately 90 percent of New Zealand’s gross domestic product.