Resilience Amidst Risks: Small Business Sales Maintain Upward Momentum

Xero data shows a March quarter rebound in hospitality and retail as interest rate cuts filter through, though rising fuel costs from the Iran war threaten the recovery.

By: AXL Media

Published: Apr 30, 2026, 5:06 AM EDT

Source: RNZ Pacific

The Return of Discretionary Spending

The March quarter data suggests that New Zealand households are finally beginning to loosen their purse strings after a period of prolonged caution.

Hospitality Rebound: The hospitality sector recorded its best quarter in nearly three years, with sales up 4%. This suggests a renewed willingness to spend on non-essentials like dining out.

Retail Strength: Retail trade led the charge with a 5% increase in sales.

Construction Recovery: After two years of consistent losses, construction sales rose for the third consecutive quarter, up 4%, signaling a stabilization in the housing and infrastructure markets.

The Two-Speed Regional Economy