Small businesses are seeing improvements in sales, jobs and waited less time for invoices to be paid.
Photo: RNZ
The Xero Small Business Index for October indicates national sales rose 6.4 percent year-on-year, following two months of decline, while jobs increased 4.4 percent.
Xero managing director for New Zealand and Pacific Islands Craig Hudson said the numbers were positive, but businesses were working harder to achieve those results.
Small firms were also better prepared to manage through the latest wave of Covid-19 lockdowns.
"It's also important we don't underestimate the mental toll the ongoing lockdown restrictions and uncertainty are having on the small business community," Hudson said.
"The feedback I'm getting directly from small businesses is that they're struggling right now."
Most industries saw a strong bounceback in sales, led by construction, manufacturing and retail trade while hospitality and tourism were still struggling.
He said the Auckland region's job numbers underperformed the rest, with record increases in Wellington, Canterbury, Otago and Waikato.
"One potential side effect of the ongoing lockdown restrictions is Kiwis being turned off working in hospitality due to uncertainty around their employment and are instead opting for more 'steady' employment in retail and other sectors."
Auckland businesses also waited longer for invoices to be paid than in other regions, with a national average of 23.8 days, compared with 26.1 in Auckland.