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Speaker 1: Now small business dart up of the June quarter sales

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Speaker 1: still flat overall, down zero point one percent year on

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Speaker 1: Yeah no, but check the regional divide out a Tigo

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Speaker 1: up three point nine, Cannibalry at one point eight, which

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Speaker 1: means someone went backwards. This time it was North and

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Speaker 1: Wellington and Auckland. Bridget Snelling a zero's country manager back

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Speaker 1: with this, Bridget, very good morning to you.

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Speaker 2: Good morning mate.

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Speaker 1: If you look at the AG ten point nine eleven

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Speaker 1: in March fifteen and December for the quarter, I mean,

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Speaker 1: are they doing all the lifting or just a lot

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Speaker 1: of it?

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Speaker 2: Well, they're doing a lot of it. I mean I

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Speaker 2: think that the data, the Zerosyll Business Insights data is

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Speaker 2: showing us that agree, it's having a really a strong

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Speaker 2: bounce back. That data is really impressive. But unfortunately other

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Speaker 2: sectors are not faring so well.

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Speaker 1: Right, so one point one overall this is one point

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Speaker 1: one up in the March quarter, so we're down smidge.

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Speaker 1: What's happened there? Do you think? Well?

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Speaker 2: Yeah, we're down zero point one percent for the March

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Speaker 2: quarter and that does continue a twelve month trend of

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Speaker 2: underperformance for small business sales. So we you know things,

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Speaker 2: I think of what it's telling us is that things

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Speaker 2: are still pretty tough out there. We're not seeing the

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Speaker 2: economic recovery for smeths that we would hope to have

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Speaker 2: seen from the ocr cut. So you know, we've seen

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Speaker 2: in June it's down, but actually the month of June itself,

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Speaker 2: in that quarter, we were up.

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Speaker 1: Well, I was going to ask you about that. Four

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Speaker 1: point four is huge compared to what the overall number is.

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Speaker 1: What happened in June.

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Speaker 2: Well, I've been asking myself the same thing. Yeah, there's

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Speaker 2: nothing in particular in the data to tell us exactly

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Speaker 2: why June has been so much stronger than April and May.

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Speaker 2: But so I think we can say, well, maybe there's

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Speaker 2: some green shoots here, maybe there's a little bit of

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Speaker 2: sign of recovery, but it's certainly certainly overall for the

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Speaker 2: past year, things have been still pretty tough for KII

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Speaker 2: small business.

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Speaker 1: We'll know for once the July August ten and numbers

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Speaker 1: come in. Long term average that's six point three, So

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Speaker 1: that tells you where we've been at six point three,

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Speaker 1: So zero point one. We really are wading through mud here,

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Speaker 1: aren't we.

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Speaker 2: Yeah, that's right, we're sort of flat lining. I guess

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Speaker 2: you could say, and we are you know, this as

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Speaker 2: well below the long term national average, as you've said,

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Speaker 2: and we are lagging behind Australia which has grown three

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Speaker 2: percent in that quarter. So we see that we have

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Speaker 2: still got sales week doesn't as you said, obviously it's

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Speaker 2: concentrated in the North Island. South Island is performing better

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Speaker 2: and agri is leading the way. So those are other

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Speaker 2: sectors that are more sensitive to consumer spending and interest rate.

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Speaker 2: It's like construction obviously down and quite significantly down six

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Speaker 2: point four percent, retails holding flat hospos down two point

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Speaker 2: one percent, so you know they are there are still

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Speaker 2: really tough conditions for those smeths and obviously with constructions

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Speaker 2: to climb, that's construction is obviously such a big sector

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Speaker 2: in the economy and has a much broader economic impact.

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Speaker 2: So I think that's definitely one that we're watching closely.

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Speaker 1: And here's the problem your main sentence, I mean Auckland

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Speaker 1: and Wellington. Wellington's down three point one, Orkands down one

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Speaker 1: point three. I mean that's the Auckland, especially massive populations.

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Speaker 1: You if your engine's not working, you're in trouble, aren't you.

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Speaker 2: Well, that's right, I mean, most of our small businesses

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Speaker 2: in New Zealand are concentrated in Auckland. Obviously Wellington you know,

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Speaker 2: as well being a slight smaller city, but yeah, obviously

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Speaker 2: Auckland is where we want to see strong economic activity.

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Speaker 2: So certainly a concern that Auckland's not faring so well.

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Speaker 1: All the people you talk to, this green shoot talk

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Speaker 1: that's been going on all year, do you believe it?

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Speaker 1: Is it real or is it just noise?

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Speaker 2: Look, I think for some businesses it's real, But most

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Speaker 2: of the businesses that I talk to are still finding

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Speaker 2: things really tough, and actually some of them are super

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Speaker 2: frustrated that there is chad of green shops when they

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Speaker 2: are not yet experiencing it themselves. So I think it's something.

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Speaker 2: You know, we are obviously had a very unstable global

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Speaker 2: economic situation right now. I think there's a lot of

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Speaker 2: consumer uncertainty and so probably people are not feeling confident

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Speaker 2: to spend or you know, as they may have done

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Speaker 2: it in a more prosperous economic time. So that's impacting

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Speaker 2: spas right because obviously they're ninety seven percent of our economy,

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Speaker 2: they're really feeling the pinch sell So it's still still

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Speaker 2: really important. All those messages we've been saying for a

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Speaker 2: couple of years now about helping smith to plan ahead,

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Speaker 2: watching cash flow, paying invoices as soon as you can

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Speaker 2: to help with a business's cash flow, those things still

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Speaker 2: really apply. It's parsically not out of the woods.

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Speaker 1: Excellent insight, Bridget appreciated as always. Bridget Snelling, who's the

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Speaker 1: zero country Manager, with us this morning for more from

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Speaker 1: the mic Asking Breakfast, listen live to news talks it'd

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