NZ information technology sales fall

Sales of information technology (IT) goods and services fell 4 per cent to $7.1 billion in 2002 - the first time since 1994 when Statistics New Zealand began surveying the sector that sales have declined.

However, New Zealand IT exports continued to boom - rising 17 per cent to $968 million in the 2002 financial year, the department said.

The increase was due to a 36 per cent rise in exports of computer services to $365 million and a 17 per cent rise in exports of computer equipment to $432 million. Software exports rose in 2002 by 21 per cent to $121 million.

Sales of IT goods and services to New Zealand users fell 6 per cent to $4.3 billion, mainly because of a 17 per cent fall in communication hardware and cables, while there was a 5.2 per cent fall in sales of computer services.

The New Zealand dollar rose 16 per cent in the year to June 30, 2002, possibly accounting for a good proportion of the fall in IT sales within New Zealand. However, SNZ said it did not calculate the effects of exchange rate movement.

- NZPA