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

 


Leading indicator of real economy falling


Leading indicator of real economy falling

With a drop in sales recorded by the Economic Survey of Manufacturing for the March Quarter, the relative strength of the kiwi dollar is no longer an accurate reflection of New Zealand's relative economic strength, the Employers & Manufacturers Association (Northern) says.

"The Economic Survey of Manufacturing is the most precise indicator of the country's real performance, and the figures for the March quarter show sales down 2% on the December quarter as well as about 2% down in real terms on the same quarter of last year," said Alasdair Thompson, EMA's chief executive.

"Stockpiles of finished goods ballooned 40.5% from the same quarter of the previous year and investment slumped 30.9 per cent.

"The economy is rapidly cooling.

"Plainly the high value of the kiwi dollar is no longer justified and neither are our high interest rates.

"Manufacturers are blaming our relatively high interest rates for underpinning the US/NZ cross rate and penalising their export competitiveness.

"They say the high exchange rate is the number one reason for a lack of export progress, and for sales slipping on the local market.

"With the world economy in the doldrums they are finding exporting

tougher.

"Other uncertainties expressed recently in our ANZ Business New Zealand Performance of Manufacturing Index include:

* costs associated with the new workplace safety amendment, particularly the prohibition against insuring against fines;

* shortages of vocational skills, and

* worries about new costs associated with changes to the Holidays Act."


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

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>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news