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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news