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

 

Improving World Economy Brings Optimism

12 April 2002

Improving World Economy Brings Optimism To Exporters

Signs of recovery in the US and confidence in the Australian market have led to more New Zealand manufacturing exporters feeling optimistic than pessimistic about the future, for the first time since December 2000.

A report prepared for Trade New Zealand by the New Zealand Institute of Economic Research (NZIER) showed that business confidence among exporters improved markedly in this quarter. A net 29% of manufacturing exporters expect general business conditions to improve over the next six months.

That compares with a 3% expecting deterioration in the previous survey.

Trade New Zealand Chief Executive Fran Wilde says the jump in business confidence is encouraging, especially at a time when international tension has led to conservatism and nervousness amongst overseas buyers.

“At Trade New Zealand our offshore offices have been incredibly busy, which is a sign of increased confidence leading to a boost in exporting for our local businesses. Of particular note for exporters is the improving economic outlook in two of our most important markets – Australia and the US. That is definitely good news,” she says.

“Our New Zealand-based client services teams, who are working throughout the country, report particular demand for our services in non-traditional export sectors such as technology, biotechnology, the creative industries, value-added engineering products and manufactured wood products.”

The report said encouraging signs for a recovery in the US may have relieved some of the anxiety firms were feeling towards the world economic growth, boosting their export sales expectations. However, firms reported an easing in export sales growth in the March quarter, suggesting the impact of a recovery is yet to be felt.
While a net 35% of manufacturing exporters are expecting an increase in export sales over the next three months, only 8% reported an increase in the past three months, compared to a net 10% in the previous quarter.

Of non-exporting firms, a net 21% expect business conditions to improve. The NZEIR report said the rise in confidence appears to be closely related to a substantial improvement in expectations about future export sales.

In line with the NZIER survey, Australian business confidence has also improved strongly. Optimism regarding future export sales has seen a strong bounce back in confidence and activity among Australian manufacturers.

Senior Trade Commissioner to Australia John Nicholson says there is a very noticeable increase in business confidence in Australia. Consumer spending on food, clothing, soft goods, household goods and recreation goods is up and the outlook for increased investment in the transport and mining sectors is particularly strong.

Mr Nicholson says more New Zealand companies than ever are participating in trade fairs and consumer shows to promote their products.

“This is likely to lead to more companies being ready to take advantage of improved confidence in the market and to increase their export sales to Australia,” he says.

NZEIR surveys 1500 firms nationwide in its quarterly survey of business opinion amongst manufacturing exporters. It covers a wide range of business indicators and calls for forecasts for the three months ahead as well as a report on the three months ended.

Ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Dry: Beef + Lamb Launches Drought Resources

The resources include a fact sheet outlining strategies to manage and mitigate the effects of drought, coping with stress on the farm and advice on feed requirements and animal welfare during the dry period. More>>

ALSO:

InternetNZ: Net Neutrality Failure In US "Will Hurt All Users"

InternetNZ Chief Executive Jordan Carter has condemned the decision by the United States communications regulator to undo 2015 open Internet rules, warning that all Internet users will end up worse off as a result. More>>

ALSO:

Mycoplasma Bovis: More Properties Positive

One of the latest infected properties is in the Hastings district, the other three are within a farming enterprise in Winton. The suspect property is near Ashburton. More>>

ALSO:

Manawatū Gorge Alternative: More Work Needed To Choose Route

“We are currently working closely and in partnership with local councils and other stakeholders to make the right long-term decision. It’s vital we have strong support on the new route as it will represent a very significant long-term investment and it will need to serve the region and the country for decades to come.” More>>

ALSO:

ScoopPro: Helping PR Professionals Get More Out Of Scoop

Scoop.co.nz has been a fixture of New Zealand’s news and Public Relations infrastructure for over 18 years. However, without the financial assistance of those using Scoop in a professional context in key sectors such as Public Relations and media, Scoop will not be able to continue this service... More>>