A growing number of businesses aren't making a profit, and the number could keep rising

Inland Revenue data shows one in five businesses are reporting a loss.

Infometrics chief forecaster Gareth Kiernan says these stats include a range of types of businesses, including some that are not even operational.

He says the number of businesses in the red is likely to keep rising, until the labour market and spending turn around.

Kiernan says the figures could deteriorate further, before they improve again.