Xero data: Continued sales growth recorded for Kiwi small businesses

Wellington — 30 April, 2026 —Xero, the global small business platform, today released its Xero Small Business Insights (XSBI) revealing Kiwi small business sales continued to grow in the March quarter as fragile confidence began returning to local small businesses.

The XSBI data show small business sales rose 3.9% year-on-year (y/y) in the March quarter - after an identical rise in the December quarter - with momentum building over the three months (+2.1% y/y in January, +4.2% y/y in February and +5.5% y/y in March).

Small business sales growth broadened across industries in the March quarter, with discretionary sectors showing renewed momentum as interest rate cuts began to flow through the economy.

Other services (+5.4% y/y) and retail trade (+5.1% y/y) were the strongest performers, while hospitality recorded its best quarter in nearly three years (+4.0% y/y). Construction sales also continued to recover, rising 4.0% year‑on‑year for a third consecutive quarter after two years of consistent losses.

Bridget Snelling, Country Manager - Aotearoa New Zealand at Xero, said it’s encouraging to see a continued upswing in small business sales, with growth extending across industries.

“In the March quarter we saw encouraging signs that discretionary spending was returning. Strong results in retail and hospitality — with hospitality recording its best quarter in nearly three years — suggest households were becoming a little more willing to spend on non‑essentials,” says Snelling.

“This is consistent with the impact of interest rate cuts beginning to flow through to consumer behaviour, providing some welcome relief for small businesses.

“Of course, we need to consider the broader macroeconomic backdrop: we are yet to see the most significant impacts of the ongoing conflict in the Middle East and how this impacts the cost of living in New Zealand.

“Rising fuel prices put pressure on both sides of the ledger — they lift costs for businesses while also weighing on consumer spending.”

“But the encouraging thing is it appears the small business economy is in a stronger position to absorb these shocks after five consecutive quarters of improving sales and confidence.”

Regional sales performance remained strongest in the South Island, led by Canterbury (+6.5% y/y) and Otago (+5.8% y/y). Sales growth also strengthened in Auckland (+3.9% y/y), Wellington (+2.9% y/y) and Northland (+1.4% y/y), all improving on the previous quarter.

Improving sales conditions are beginning to lift employment, with small business jobs rising 1.1% year‑on‑year in the March quarter, up from 0.1% in the previous quarter.

Agriculture (+6.0% y/y) and manufacturing (+2.6% y/y) led employment gains, while construction recorded its first increase in jobs in more than two years (+0.3% y/y). However, employment in retail trade (-2.5% y/y) and hospitality (-3.7% y/y) remains below year‑ago levels.

Regionally, Canterbury (+4.4% y/y) and Otago (+2.6% y/y) led job growth, while Auckland (-0.7% y/y) and Wellington (-0.5% y/y) continued to record fewer jobs than a year earlier.

Snelling says: “The pick‑up in jobs growth is a meaningful signal that small business owners have been starting to feel more confident about the sustainability of the sales recovery, after a long period of caution.

“That said, this confidence will be tested in the coming months if fuel prices stay high or supply pressures intensify.”

ENDS

Media Contact

Xero Aotearoa New Zealand | Kristen Barrett | +64 22 064 2924 | kristen.barrett@xero.com

About Xero

Xero is a global small business platform that helps customers supercharge their business by bringing together the most important small business tools, including accounting, payroll and payments — on one platform. Xero’s powerful platform helps customers automate routine tasks, get timely insights, and connects them with their data, their apps, and their accountant or bookkeeper so they can focus on what really matters. Trusted by millions of small businesses and accountants and bookkeepers globally, Xero makes life better for people in small business, their advisors, and communities around the world. For further information, please visit xero.com.