Challenges lie ahead for small businesses, as sales slide

Latest research from accounting software firm Xero show sales dropped off in the three months to December -- particularly in the manufacturing, construction, agriculture and retail sectors.

Xero Country Manager Bridget Snelling says weak sales growth is discouraging but not unexpected.

She says it reflects high interest rates and ongoing cost of living pressures that are putting financial strain on New Zealanders.

Snelling says the tough economic climate makes it difficult for small businesses.