Business income rebounds in 2011

Total income for New Zealand businesses rebounded in the 2011 financial year, Statistics New Zealand said today. Increased household spending and rising exports contributed to the growth in business activity.

Total income for all businesses increased 4.7 percent, to $575.4 billion. This followed a 4.2 percent decrease in the 2010 financial year. In 2011, income from sales of goods and services (up $23.2 billion or 5.5 percent) contributed the most to the overall increase. In comparison, sales of goods and services fell $13.5 billion in the 2010 financial year.

"Increases in most industries show that the New Zealand economy is recovering from its 2010 decline," industry and labour statistics manager Neil Kelly said. "In particular, manufacturing and agriculture recorded strong growth in 2011, due to increases in both domestic and external demand."

Total income increased $7.6 billion (8.6 percent) for the manufacturing industry and $4.1 billion (14 percent) for the agriculture industry. Financial and insurance services showed the largest decline in total income, down $1.4 billion (2.2 percent).

Total expenditure for all businesses increased to $533.3 billion in the 2011 financial year, up 7.0 percent. This followed a 7.0 percent decrease in the 2010 financial year. Purchases and other operating expenditure contributed most to the overall increase, up 9.3 percent in 2011 compared with a 3.8 percent decrease in 2010.

Surplus before income tax dropped to $44.4 billion, down 11.9 percent from $50.4 billion in the 2010 financial year. This was primarily due to a strong $29.8 billion increase in purchases and other operating expenditure in 2011. The strongest increase in operating expenditure was recorded in the public administration and safety industry, up $8.6 billion (72.6 percent). This was due to a large increase in the Earthquake Commission's claim liabilities, following the 2010/11 Christchurch and Canterbury earthquakes.

Other financial variables, and economic ratios by industry, are available in Annual Enterprise Survey: 2011 (provisional), and at a more detailed level on request. For an example of more detailed data see Industry benchmarks.

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

See also:  Annual Enterprise Survey: 2011 financial year (provisional)  –  Information release