8 Aug 2012

NZ firms outperform Australian counterparts - survey

10:00 am on 8 August 2012

The country's largest accounting software firm says New Zealand businesses are likely to feel the impact of weaker demand for services across the Tasman.

The latest MYOB business monitor survey has found a net 1% of small-to-medium New Zealand businesses increased their earnings in the past year.

In contrast, a net 23% of Australian firms experienced a decline in revenue.

MYOB general manager Julian Smith says there has been a slowdown in construction, trade and manufacturing in Australia due to the global financial crisis catching up with the country.

He says Australia has been insulated up to now by the mining boom and government stimulus packages, but now consumers are tightening their wallets.

Mr Smith says New Zealand business owners are tougher and used to dealing with difficult conditions so therefore are much more likely to have good solid systems and processes.

He says any further contraction in the Australian economy is likely to have a negative impact on New Zealand.

Mr Smith says hopefully there will be some improvement in the Australian small-business sector, particularly on the eastern seaboard, if New Zealand is to continue to do well.