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

 

Back from the holidays

Back from the holidays

Confidence improved in JANUARY despite the global storm clouds, the ever-stronger NZ dollar, falling sales and employment. Aggregate sales fell in DECEMBER 2002 when compared to DECEMBER 2001 some 4.4%. Across the board back came the optimists, the middle ground held. "People back from the holidays are more strongly optimistic than when they left. Net confidence reported in JANUARY was 24 up from 21 in our survey completed in DECEMBER," said John Walley, CEO of the Canterbury Manufacturers' Association.

Aggregate sales decreased for the month of DECEMBER 2002 by 4.4% on DECEMBER 2001, with domestic sales down by over 1.6% and export sales down by about 10%. "Our leading indicators say that investment intentions may have softened further but sales, profits and employment are expected to rise," said Walley. "This builds on trends we saw at the end of 2002."

Staff numbers have shown a decrease of 6.5% on the same period last year. There is some anecdotal feedback that order books filled late before the holidays and have a softer carryover in to 2003 that the same period in 2002. In the survey completed in JANUARY our net leading indicators, anticipated staff levels and profitability were up a little, turnover indications were down and investment intentions held at last month’s level. "Performance down, feelings up - carryover from the holidays perhaps, nevertheless sentiment is positive," said John Walley.

From the constraint standpoint, market conditions were 61% with skilled staff constraints at 11%. Capacity was cited as a constraint by the balance of our respondents.

"The surge of the Kiwi against the US and Australia dollars reducing returns and encouraging imports featured in all comments from Canterbury manufacturers. There was also some comment on softening consumer demand in the domestic market. Others commented on ever increasing compliance costs," said John Walley

"Accelerating growth on the back of the increasing confidence is the challenge. Growth must be at the top of the national agenda, increasing exchange rates make microeconomic policies aimed at developing the manufacturing sector all the more urgent," said Mr Walley "An excursion Kiwi exchange rate similar to those seen in the early 90s has the capacity to destroy in one year markets that have taken a decade to build."

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>