Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Growth plans on hold - latest survey

Media release August 25th, 2000

Growth plans on hold - latest survey

The number of Auckland's manufacturers expecting turnover and profits to pick up is slightly higher than last month, said Bruce Goldsworthy commenting on EMA's monthly poll of business conditions for July.

"Other indicators show investment and sales growth are on hold or ebbing," Mr Goldsworthy said.

"A surprise is that in spite of the weakness of the exchange rate, the number of respondents expecting to increase their prices had dropped right back to 26 per cent of the sample, from 42 per cent the previous month. This possibly reflects an extremely competitive market as margins are squeezed.

"Nevertheless the currency's impact on the cost of imported raw materials and components is the main reason for upward price pressures on locally made goods.

"Though total turnover in July was down slightly, including export receipts, these should be read across the three month trend, not just for the one month,"

"The exchange rate and industrial relations are the two factors uppermost in mind for most businesses.

"Investment intentions have slipped back, including for training, which we relate to the reported increase in spare production capacity. Only a quarter of firms say they are now operating at full capacity, a sharp fall from the 37 per cent reporting full capacity last month. This represents far more spare capacity than at any time this year.

"Staff numbers, cashflow and other indicators show an overall holding pattern at a time when we were expecting more bullish export activity."

Further comment: Bruce Goldsworthy tel 09 367 0948 (bus) 09 522 2723 (hme)

SURVEY OF BUSINESS CONDITIONS Survey of Business Conditions::: :::


::::::::::::Manufacturers' Division

Ref. 00/01-38 ,File A.10.3.1


:::::::::::::::::::::Last:::Prev:::Prev Prev:::Prev:::Prev

:::::::::::::::::::::Mth:::Mth:::Mth::: Mth:::Mth:::Mth

TOTAL TURNOVER::::::Export:::36%:::Domestic:::64%::: June:::May:::April:::Mar:::Feb:::Jan

::::::Increased :::-4%::::::::::::11%:::12%::: -13%:::21%:::8%:::10% :::

DOMESTIC TURNOVER::::::Domestic turnover increased by ::::::-3%::: 9%:::2%:::-13%:::19%:::7%:::6% :::

EXPORT TURNOVER::::::Export turnover increased by ::::::-6%::: 20%:::27%:::-13%:::23%:::9%:::17% :::



STAFF NUMBERS::::::Staff numbers decreased by ::::::0%:::-3%::: -1%:::1%:::0:::-1%:::-1% :::

% of respondents staffing requirements for next month::::::Increase::: 4%:::8%:::7%:::8%:::14%:::22%:::11%

:::::::::::::::No Change:::81%:::79%:::78%::: 75%:::86%:::78%:::81%

:::::::::::::::Decrease:::15%:::13%:::15%::: 17%:::0%:::0%:::7% :::

% of respondents having difficulties recuiting staff::::::Skilled:::47%::: 38%:::31%:::44%:::60%:::56%:::45%

:::::::::::::::Unskilled:::24%:::25%:::19%::: 31%:::20%:::25%:::27%

:::::::::::::::Man/Prof:::29%:::38%:::50%::: 25%:::20%:::19%:::27% :::



% of respondents who reported an improvement::::::Improve:::19%:::29%::: 27%:::20%:::27%:::22%:::33%

% of respondents who reported no change:::::::::Same:::52%::: 42%:::58%:::48%:::68%:::37%:::48%

% of respondents who reported a worse position::::::Worse:::30%::: 29%:::15%:::32%:::5%:::41%:::19% :::



% of respondents who would invest in equipment::::::Equipment::: Yes:::48%:::63%:::46%:::88%:::68%:::63%:::63%

% of respondents who said they would not invest in equipment:::Equipment No::: 52%:::38%:::54%:::12%:::32%:::37%:::37%

% of respondents who would invest in building work::::::Building Yes::: 15%:::25%:::19%:::20%:::18%:::19%:::19%

% of respondents who said they would not invest in building work::: Building No:::85%:::75%:::81%:::80%:::82%:::81%:::81%

% of respondents who would invest in training:::::::::Training Yes::: 59%:::71%:::67%:::80%:::86%:::74%:::74%

% of respondents who said they would not invest in training::: Training No:::41%:::29%:::33%:::20%:::14%:::26%:::26% :::



% of respondents you are confident turnover will improve::: Improve:::26%:::29%:::15%:::28%:::14%:::22%:::48%

% of respondents you see turnover remaing the same::::::Same:::59%::: 42%:::48%:::56%:::71%:::63%:::52%

% of respondents you see turnover worse:::::::::Worse:::15%::: 29%:::37%:::16%:::14%:::15%:::0%

% of respondents you are confident profitability will improve:::Improve:::30%::: 21%:::11%:::16%:::15%:::26%:::48%

% of respondents you see profitability remaing the same::::::Same::: 41%:::50%:::52%:::60%:::70%:::56%:::44%

% of respondents you see profitability worse:::::::::Worse:::30%::: 29%:::37%:::24%:::15%:::19%:::7% :::



% of respondents who are at full capacity:::::::::Full:::25%::: 37%:::38%:::41%:::53%:::43%:::46%

% of respondents who are below capacity:::::::::Below:::75%::: 63%:::63%:::59%:::47%:::57%:::54%

Average Utilisation::: 69%:::65%:::67%:::74%:::74%:::76%:::75% :::



% of respondents who are expected to increase prices::::::Increase::: 26%:::42%:::37%:::48%:::30%:::31%:::19%

% of respondents who expect prices to remain the same::::::Same:::74%::: 58%:::63%:::52%:::70%:::65%:::78%

% of respondents who expect to decrease prices::::::Decrease::: 0%:::0%:::0%:::0%:::0%:::4%:::4% :::

% of respondents who are rising prices because of :Wage Settlements::: 10%:::12%:::12%:::11%:::14%:::10%:::11%

::::::::::::R.M.Costs::::::54%:::59%:::52%::: 56%:::71%:::53%:::63%

::::::::::::Finance Costs:::7%:::15%:::18%:::14%::: 5%:::10%:::11%

::::::::::::ACC::::::17%:::9%:::12%:::8%::: 10%:::13%:::5%

::::::::::::Other::::::12%:::6%:::6%:::11%::: 0%:::13%:::11% :::



% of respondents who were concerned with the following:Interest Rates::: 11%:::16%:::15%:::14%:::13%:::14%:::11%

::::::::: Business Rates::::::2%:::2%::: 4%:::2%:::0%:::2%:::0%

::::::::: Competition::::::11%:::11%::: 10%:::14%:::16%:::18%:::20%

::::::::: Industrial Relations:::22%:::28%::: 25%:::19%:::24%:::14%:::9%

::::::::: Exchange Rates::::::23%:::23%::: 26%:::28%:::29%:::30%:::31%

::::::::: Inflation::::::11%:::9%::: 7%:::9%:::8%:::2%:::7%

::::::::: Taxation::::::9%:::4%:::6%::: 5%:::5%:::9%:::4%

::::::::: Cash Availability::::::11%::: 9%:::6%:::9%:::5%:::9%:::16%

::::::::: Other::::::0%:::0%:::1%::: 0%:::0%:::2%:::2% :::

© Scoop Media

Business Headlines | Sci-Tech Headlines


Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>


Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>


Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>



Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news