First drop in industry income for 10 years
Industry income fell for the first time in more than 10 years during the 2010 financial year.
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Industry income fell for the first time in more than 10 years during the 2010 financial year.
Figures contained in Statistics New Zealand's just released annual enterprise survey showed income for all New Zealand businesses fell 4.2%, to $549.6 billion, in the period.
It was the first fall since the survey was redeveloped in 1999 and followed a small increase in total income in 2009.
"These results show how the challenging economic climate in 2010 affected the financial performance of New Zealand businesses," Statistics New Zealand industry and labour statistics manager Neil Kelly said.
"The finance industry bore the brunt, but manufacturing and distribution industries were also affected by flat household spending and falling exports."
The financial and insurance services industry group showed the largest drop in total income, down 13.8 percent, or $10.3 billion, to $64.2 billion, the survey showed.
This was mostly due to falls in interest and dividends received, Mr Kelly said.
The health care and social assistance industry group had the largest increase in total income, up 5.7%, or $1.3 billion, to $24.5 billion.
Total expenditure for all New Zealand businesses fell 7.2%, or $497.7 billion in 2010, the survey said.
Purchases and other operating expenses, which formed the largest component of total expenditure, dropped 3.8%, following a 2% increase the previous year.
Although both total income and total expenditure decreased in 2010, surplus before income tax rose by 31.8%, or $12.2 billion, from the 2009 financial year, to $50.8 billion.
This was primarily because non-operating expenditure fell $14.4 billion, Mr Kelly said.
Colin Williscroft
Fri, 16 Sep 2011
Fri, 16 Sep 2011
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First drop in industry income for 10 years
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