Manufacturing, retail and construction businesses reported an increase in orders or work commissioned before the end of March. Photo / 123RF
Manufacturing, retail and construction businesses reported an increase in orders or work commissioned before the end of March. Photo / 123RF
A third of New Zealand small to medium enterprises have more work lined up for the first quarter of 2026 compared to usual, in another sign that economic activity is trending in the right direction.
And new data is also showing that more Kiwi businesses are set to use akey incentive from the Government’s 2025 Budget before the end of the financial year.
MYOB’s latest nationwide survey of more than 500 small to medium enterprise (SME) owners and decision makers shows more local businesses are expecting an increase in trade over the first three months of the year compared to the year prior.
A further 40% of respondents said they have the same amount of work as they would normally expect for the period, but a quarter said they have less in the pipeline than usual.
MYOB chief customer officer Dean Chadwick said while many SMEs are navigating uneven demand and ongoing cost pressures, the results suggest business activity is starting the year on firmer footing.
“SMEs ended 2025 with largely steady trading conditions in the final few months of the year, though performance varied across the sector,” Chadwick said.
“The start of 2026 appears more settled. With a third of businesses reporting more work lined up for the first quarter than usual, alongside a large proportion seeing stable pipelines, we’re seeing signs of a segment that is steadying and beginning to look ahead.”
MYOB chief customer officer Dean Chadwick said many SMEs are planning to take advantage of the Government's Investment Boost policy. Photo / Supplied
The sales outlook from respondents was positive, particularly for key sectors that have struggled over the past few years.
Manufacturing SMEs were the highlight, with those surveyed reporting a 38% increase in orders or work commissioned before the end of March.
Retail was also positive, reporting a 37% increase, as well as construction and trade businesses, reporting a 33% increase for the same period.
To help achieve revenue targets before the end of the financial year, 33% of SMEs are planning to run sales, discounts or promotions, with 32% planning to run a sale similar to 2025.
More than 20% (22%) of respondents said they would start sales earlier, building on the trend seen last year before Black Friday.
A further 16% of respondents said they would offer increased discounts, with 11% planning to have a greater range of offers available.
Chadwick said that while more than a quarter of businesses exceeded their sales expectations and most met their forecasts, a quarter experienced a softer than predicted performance.
The firm’s research had also highlighted an increased interest to use the Government’s Investment Boost policy, he said.
The policy, which was announced as part of Budget 2025, allows businesses to deduct 20% of the cost of new assets immediately from their taxable income on top of normal depreciation.
According to the survey, 44% of SMEs are planning to bring forward deductible business purchases, on things like supplies or equipment, before March 31.
“We know from our research at the end of last year that many local businesses are planning to take advantage of the Investment Boost to maximise business investment this year.
“We can also see from the latest data that businesses are making good on the growth ambitions they signalled at the end of last year – not only seizing opportunities to increase sales before the end of the financial year, but also upping their own spending on plant, supplies and equipment to boost their operations."
Chadwick said the growing number of businesses moving to execute their strategies for growth and bring forward their own spending was good news for the economy.
“Ultimately these are all positive signs that, after a few incredibly challenging years, activity is trending in the right direction for the country’s half a million plus SMEs.”
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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