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Annual Enterprise Survey: 2010 financial year (provisional)
Embargoed until 10:45am  –  16 September 2011
Commentary

The Annual Enterprise Survey (AES) is New Zealand’s most comprehensive source of financial statistics. For information on what the survey measures and where the data is collected from, see the 'Definitions' section.

Income and expenditure fall in 2010 financial year

Total income for all industries decreased 4.2 percent to $549,607 million in the 2010 financial year. This is the first fall in total industry income since the redeveloped Annual Enterprise Survey time series began in 1999.

Of the 16 broad industry groups, nine recorded falls in total income. The largest changes from the previous financial year were:

  • financial and insurance services total income, down $10,278 million (13.8 percent), mainly due to decreased interest and dividends received
  • manufacturing total income, down $6,703 million (7.0 percent).

Health care and social assistance had the largest increase in total income, up $1,317 million (5.7 percent).

Sales were weak in manufacturing, wholesale trade, and retailing in the 2010 financial year. Changes from the 2009 financial year were:

  • manufacturing sales, down $6,612 million (7.1 percent)
  • wholesale trade sales, down $1,787 million (2.4 percent)
  • retail trade and accommodation sales, down $765 million (1.2 percent).

Total expenditure for all industries decreased 7.2 percent, to $497,710 million. Of the 16 broad industry groups, 14 recorded falls. The largest changes from the previous financial year were:

  • financial and insurance services total expenditure, down $13,675 million (22.0 percent), mainly because of a fall in interest paid
  • public administration and safety total expenditure, down $5,739 million (17.8 percent).

Health care and social assistance had the largest increase in total expenditure, up $1,226 million (5.6 percent).

Surplus before income tax, which is total income less total expenditure (plus/minus change in stocks), was $50,754 million across all industries. This is an increase of $12,237 million from the 2009 financial year. This was primarily a result of non-operating expenditure falling $14,378 million.

The largest increase in surplus in the 2010 financial year was in the public administration and safety industry group, up $6,836 million. This was mainly due to a large fall in non-operating expenditure.

Salaries and wages paid to employees across all industries increased $228 million (0.3 percent) in the 2010 financial year. This compares with an increase of 4.1 percent in 2009.

The total value of fixed assets grew 3.4 percent, to $508,600 million, lower than the 7.1 percent increase in the previous financial year.

The current ratio, which measures current assets to current liabilities, was 82.6 percent. This is slightly higher than the 80.5 percent recorded in the 2009 financial year.

The graph below shows the movements in total income and expenditure by broad industry group.

 Graph, Change in total income and expenditure by industry group, change from the previous financial year, 2010 financial year.

Sales weak across economy

In the 2010 financial year most of the economy was constrained, with sales of goods and services falling at the all industries level by $14,226 million (3.3 percent). Slowing household spending and falling exports led to reduced activity in manufacturing, wholesale trade, and retail. 

Manufacturing had the largest fall in sales of goods and services of all 16 industry groups included in the Annual Enterprise Survey. Manufacturing sales fell $6,612 million (7.1 percent), driven largely by decreased prices for petroleum. This was seen in the petroleum and coal product manufacturing industry, sales of which decreased $2,906 million (21.7 percent).

Wholesale trade sales fell $1,787 million (2.4 percent) in 2010. This followed a very small $219 million (0.3 percent) increase in sales for the 2009 financial year.

Within the retail trade and accommodation industry group, motor vehicle, motor vehicle parts, and fuel retailing sales decreased $1,158 million (8.9 percent), influenced in part by falls in the retail price of fuel. This drove the $765 million (1.2 percent) decrease in retail trade and accommodation sales. However, supermarket, grocery stores, and specialised food retailing sales increased $683 million (4.0 percent), offsetting some of the fall in the motor vehicle related retail industries.

Industries that support manufacturing and distribution were also down, with sales for the transport, postal, and warehousing industry group decreasing 8.0 percent to $17,397 million. Sales in the professional, scientific, technical, administrative, and support services industry group decreased 2.5 percent to $32,046 million.

The decline in sales activity in the 2010 financial year was also evident in decreased investment in construction activities. Construction industry group sales fell $3,443 million (9.6 percent), after falling just 0.1 percent ($24 million) in the 2009 financial year. Sales falls were seen across the industry group, with significant declines in building construction (down 10.6 percent), heavy and civil engineering construction (down 9.7 percent), and construction services (down 8.6 percent).

Although manufacturing had the largest fall in sales by value in the 2010 financial year, the construction and transport industry groups had larger percentage decreases (down 9.6 percent and 8.0 percent respectively). The graph below shows annual percentage changes in sales since 2007 for the industries mentioned above. 

Graph, Percentage change of sales by industry group, change from previous financial year, 2007 to 2010 financial years.  

Financial and insurance services interest activity down in 2010

Data on the financial and insurance services industry shown below provides an example of the type of detailed information available from Statistics NZ. Please contact our information centre to request detailed information on other industries.

In the 2010 financial year there was a significant fall in interest received and paid. This was driven by the financial and insurance services industry group.

Interest, dividends, and donations received for all industries fell $11,393 million (17.0 percent), while interest and donations paid decreased $12,031 million (20.9 percent).

The financial and insurance services industry alone had a fall in interest, dividends, and donations received of $9,883 million (18.0 percent). It also had a fall in interest and donations paid of $9,452 million (27.4 percent). This is the second year in a row that both interest received and interest paid in the financial and insurance services industry group have fallen. 

Before 2009, interest received and paid were both steadily climbing in the financial and insurance services industry group. They peaked at $49,776 million interest received, and $42,176 million interest paid, in the 2008 financial year. 

By the 2010 financial year, interest received had fallen to $32,823 million. Interest paid was down to $25,062 million.

The interest margin (calculated as interest received less interest paid) for the financial and insurance services industry has been relatively steady over the 2005–10 period. The interest margin for the financial and insurance services industry peaked in the 2007 financial year at $8,029 million.

 Graph, Financial and insurance services industry group interest activity, 2005 to 2010 financial years.

Finance is the largest sub-industry within the financial and insurance services industry group. In the 2010 financial year it contributed 82.2 percent to the industry's total income. The finance sub-industry includes banks and financial asset investors. 

Finance had a large decrease in total income in the 2010 financial year, down $9,751 million (15.6 percent). Most of this decrease was due to a $9,601 million fall in interest, dividends, and donations received. In the previous financial year, the total income for financial and insurance services decreased $5,880 million (7.3 percent), while total income for the finance sub-industry decreased $6,326 million (9.2 percent).

Total expenditure for the finance sub-industry decreased $12,798 million (25.0 percent) in the 2010 financial year, largely due to a $9,327 million (27.3 percent) fall in interest and donations paid. There was also a substantial fall in non-operating expenses, down $3,312 million (34.4 percent). In the previous financial year, total expenditure for financial and insurance services fell $4,138 million (6.3 percent), while total expenditure for the finance sub-industry decreased $4,415 million (7.9 percent).

For more detailed data, see the Excel tables under 'Downloads'.

 

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