Strong survey results 'encouraging sign' for firms

A survey of more than 1000 businesses shows the first major boost in revenue for almost two years.

And more than a third of the firms surveyed reported a lift in work or sales in the pipeline for the next three months.

In the August Myob Monitor, 31 per cent of businesses reported revenue rises compared with 26 per cent reporting a fall in the past 12 months.

The figures are a reversal of the April survey when 35 per cent of businesses reported a revenue decrease, compared with 26 per cent whose revenue had increased.

Myob general manager Julian Smith said the underlying performance highlighted in the survey pointed to a sound financial basis for the economy.

"Although many businesses have been disappointed with the pace of the recovery - and this seems to be reflected in confidence surveying - the financial performance data we collect shows some encouraging signs for the future," he said.

Based on what businesses were reporting from the last 12 months of activity, and the amount of work in their sales pipeline, a return to recession was unlikely, he said.

The survey was done for the accounting systems firm by Colmar Brunton.

Forty-three per cent of all business owners expect their revenue to increase in the next year, while only 10 per cent expect a fall.

Smith said the recovery was still unevenly spread through the economy, with larger businesses showing more work in the pipeline and higher expectations of increased revenue than small businesses - fewer than five staff - and sole traders.

Almost half the medium-sized businesses (20 to 199 staff) surveyed say they have more work or sales in the pipeline, with 43 per cent of small businesses (five to 19 staff) saying they have more work than usual in the next three months. Just over 70 per cent of medium-sized business owners now expect revenue increases in the next year.

SALES BY AREA

Business performance over the past 12 months

Taranaki: 53 per cent had revenue increase, 12 per cent decrease.

West Coast/Tasman: 43 per cent increase, 6 per cent decrease.

Wellington: 34 per cent increase, 25 per cent decrease.

Auckland: 28 per cent increase, 26 per cent decrease.

Christchurch: 32 per cent increase, 28 per cent decrease.