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

 

Double dip gets more likely

Double dip gets more likely - 23 December

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during December 2010, shows total sales in November 2010 decreased 5% (export sales decreased by 9% with domestic sales decreasing 2%) on November 2009.


The NZMEA survey sample this month covered NZ$405m in annualised sales, with an export content of 39%.

Net confidence rose to 23, up from the 0 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 102, down from 102.5 in October, the change index (capacity utilisation, staff levels, orders and inventories) went up to 101 from 100 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 107.5, up on October’s result of 107. Anything less than 100 indicates a contraction.

Constraints reported were 77% markets and 23% production capacity.

Staff numbers for November increased year on year by 3%.

“Sales results have remained extremely variable amongst manufacturers as some markets have picked up but some firms are still struggling to find sales,” says NZMEA Chief Executive John Walley. “There continues to be growth in sales to Australia and Asia, but firms selling domestically or to the United States and Europe are struggling.”

“The exchange rate remains the elephant in the room of an export led recovery.”

“Respondents have reported that they have lost contracts because of the high New Zealand dollar.”

“There is some optimism about next year as the improved confidence rating shows but orders remain very short-term and uncertain. There is also concern that continued quantitative easing next year may cause the exchange rate position to worsen.”

“We need to see a new resolve from the Government on growing exports in the New Year. Poor conditions for the tradeable sector and the cavalier attitude from the Government towards our debt problems are an increasingly serious issue. Fast growing debt and actual growth falling below forecast require action. As Kerry McDonald, head of the Savings Working Group noted, if we do not address the debt situation ourselves then we are vulnerable to a major economic shock.”

“Some cost cutting is needed to address the Government debt position but a focus on tradeable sector growth is the key issue. That means a more stable exchange rate and a balanced tax system.”

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO:

Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>

ALSO: