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

 

Export Growth Slows Further: Business Indicator

Manufacturers in the north are switching sales from exporting to the domestic market, the latest Survey of Business Conditions from the Employers & Manufacturers Association (Northern) reveals.

"Export sales growth fell back further in April after the sudden slump in February and March, but turnover on the domestic market made up slightly more than the difference," said Bruce Goldsworthy, EMA's Director of Manufacturing.

"Total sales were up just one per cent for April compared to the same month a year earlier.

"No doubt the exchange rate is making business tougher for imports with New Zealand made competing locally with more success now.

"Some of our indicators show firms overall expect business to improve with others reinforcing the trend of the last few months for very modest gains. The picture is still mixed though turning down.

"A spot of good news is that a net increase of nine per cent of respondents are looking to take on more staff.

"But the high levels last month of those looking to invest in new equipment and training has fallen back dramatically - its the lowest for several months, apparently reflecting a once off round of decision making.

"Only a net five per cent think profitability will improve which, if it continues, will affect next year's tax take.

"With capacity utilisation falling further, and competition in the market as big a business concern as ever, large price increases and price inflation are dead in the water.

"Of the 19 per cent of respondents expecting to raise prices, virtually all are said to be as a result of raw material/component costs (71 per cent) which is an exchange rate factor, and from wage settlements (24 per cent).

"Some may see the outlook overall as a 'steady as she goes' scenario, but the lack of sustained growth is beginning to become a worry. No signs are emerging of solid business growth to come.

"The economy in the north is just stumbling along."

Ends


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>

ALSO:

Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>

ALSO:

Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>

ALSO:

Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>

ALSO:

Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>

ALSO: