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

 


Domestic Sales Stronger than Exports

Domestic Sales Stronger than Exports

7 December 2012

For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during November 2012, shows total sales in October 2012 increased 7.05% (export sales increased by 1.90% with domestic sales increasing 11%) on October 2011.

The NZMEA survey sample this month covered NZ$594m in annualised sales, with an export content of 42%.

Net confidence improved to -18, up from the -33 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 93.5, down from 98.0 in September, the change index (capacity utilisation, staff levels, orders and inventories) stayed the same as last month at 96.0, and the forecast index (investment, sales, profitability and staff) is at 98.5, up on September’s result of 96. Anything less than 100 indicates a contraction.

Constraints reported were 82% markets and 9% production capacity.
Staff numbers for October decreased year on year by 3.1%.

“We are seeing some increases in exports, but the large majority of the improvements in total turnover are being fuelled by domestic sales” says NZMEA Chief Executive John Walley.

“The domestic gains in turnover were patchy; although average domestic turnover increased by 11%, only 36% of respondents reported a rise.”

“It is not unusual for our real numbers (this is the only survey that reports actual sales and job numbers) not to correspond with our sentiment indexes, sentiment says contraction and the numbers say sales expansion and job contraction. All up, I think the employment trend is the most telling and we should be concerned.”

“Market conditions continue as the main constraint on sales.”

“Opportunities are seen in the Christchurch rebuild, winning some new customers, but the major threats continue to be the exchange rate and soft demand.”

“The reported decrease in staff numbers, coupled with the long term trend of no growth continues to underpin the story of uncertainty and corresponding risk avoidance.”

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

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Gordon Campbell: On Tiwai Point (And Saying “No” In Greece)

Its hard to see how Rio Tinto’s one month delay in announcing its intentions about the Tiwai Point aluminium smelter is a good sign for (a) the jobs of the workers affected or (b) for the New Zealand taxpayer. More>>

ALSO:

Half Empty: Dairy Product Prices Extend Slide To Six-Year Low

Dairy product prices continued their slide, paced by whole milk power, in the latest GlobalDairyTrade auction, weakening to the lowest level in six years. More>>

ALSO:

Copper Broadband: Regulator Set To Keep Chorus Pricing Largely Unchanged

The Commerce Commission looks likely to settle on a price close to its original decision on what telecommunications network operator Chorus can charge its customers, though it probably won’t backdate any update. More>>

ALSO:

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news