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

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news