Xero’s small business insights for the three months to September pointed to robust economic conditions continuing especially in the hospitality sector.
The Otago results are heavily influenced by the hospitality sector, which dominates the regions economy. Despite the slowing domestic economy, business in the region has been outperforming the national market, as did jobs and wage growth in the three months to September.
Small business sales in Otago outperforming the national-average for most of 2023, although the performance gap did narrow in the most recent three months.
The strength in the Otago hospitality labour market was reflected in the latest data, with the region recording the fastest pace of jobs growth and the second largest wage rise growth in the three months to September.
While sales in September feel 1.8% compared the previous year the region experienced quarterly growth of 1.5% making it the third strongest region across the quarter. Similarly in the quarter the region experienced jobs growth of 8.3% positioning Otago with the largest jobs growth rise in the country with the second highest wage growth at 3.7%.
● Sales in Otago fell 1.8% y/y in September - around the national average of a 1.5% y/y decline.
● Sales in Otago averaged 1.5% y/y growth in the three months to September - making it the third strongest region over the quarter.
● Jobs in Otago grew 6.0% y/y in September - just below the national average of 6.9% y/y.
● Jobs in Otago averaged 8.3% y/y growth in the three months to September - the largest rise in the regions.
● Wages in Otago grew 3.7% y/y in September - above the national average of 3.5% y/y.
● Wages in Otago averaged 3.7% y/y growth in the three months to September - this was the second largest rise of all the regions.