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

 


NZMEA Survey: Economic flat line


Economic flat line - 5 April

For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during March 2012, shows total sales in February 2012 increased 4.14% (export sales increased by 11.2% with domestic sales decreasing 0.83%) on February 2011.

The NZMEA survey sample this month covered NZ$515m in annualised sales, with an export content of 44%.

Net confidence remained level at +8.

The current performance index (a combination of profitability and cash flow) is at 101, the same as in January, the change index (capacity utilisation, staff levels, orders and inventories) increased to 104 from 102 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 103, down on January’s result of 106. Anything greater than 100 indicates expansion.

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

Staff numbers for February decreased year on year by 2.63%.

“Sales have had a slight upturn this month, but looking at the long-term trend it has been about four years now since we have seen any respectable numbers,” says NZMEA Chief Executive John Walley. “We have been bouncing along the bottom since 2008 and there are comments from respondents that conditions will get worse for manufacturers.”

“The exchange rate is the biggest concern with almost all respondents reporting it as the biggest threat to their business. Weakness in markets, rebuild issues in Christchurch and difficulties with the Ports of Auckland are also contributing to the adverse conditions.”

“Staff numbers continue to track downwards as firms look to keep costs down to deal with the uncertainty.”

“The production capacity constraint has increased this month and that reflects some transitional issues between buildings for those firms impacted by the earthquakes in Christchurch.”

“The underlying issue for the traded sector is the lack of investment in capacity expansion. Those firms that invested heavily five or so years ago have been burnt by the exchange rate, and while the same economic policy framework persists they will not be taking that risk again.”

“The Government must take a role in turning this around. As an OECD report last week stated small economies are hit harder exchange rate fluctuations than larger countries as the decision to export must come earlier in a firm’s development. Therefore, a fair and stable exchange rate must be a focus for the Government.”

The New Zealand Manufacturers and Exporters Association survey gathers results from members around New Zealand. It provides a monthly snapshot of manufacturers and exporters’ sales and sentiment.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news