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

 


Performance and Expectations Soft

Performance and Expectations Soft - 21 December

For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during December 2012, shows total sales in November 2012 increased 2.86% (export sales increased by 20.3% with domestic sales decreasing 6.42%) on November 2011.

The NZMEA survey sample this month covered NZ$543m in annualised sales, with an export content of 41%.

Net confidence came out at 0, up from the -18 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 104.5, up from 93.5 in October, the change index (capacity utilisation, staff levels, orders and inventories) went up to 102 from 96 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 104, up on October’s result of 98.5. Anything less than 100 indicates a contraction.

Constraints reported were 73% markets, 9% production capacity and 18% skilled staff.

Staff numbers for November decreased year on year by 0.5%.

“A bit of a mixed bag; employment down, composite index up on the month for the first time since mid-year and sales in positive territory but less than last month. Overall trends are close to zero and with the inexorable appreciation of the currency you would have to be an unrestrained optimist to draw a lot of festive cheer from this survey.” said NZMEA CEO John Walley.

“It looks like December results will not show any real change to this picture. Markets are slow and the further currency strengthening following the do-nothing November Monetary Policy Statement will take yet more shine off the margin from the sales that are made.”

Recent Treasury reports indicate a contraction in the current account deficit at 4.7% of GDP. But the long run trend is set to see the deficit increase next year. Balancing the current account needs much more Government focus.

Generally, manufacturing decreased by 1.1% in the September 2012 quarter say Statistics New Zealand. Overall GDP growth was low at 0.2% and construction, off a very low base, increased 4.5%.

“The September quarter is soft and our more recent indicators suggest the December quarter will be the same; we need the export sector to fire, but sadly our currency appreciation puts it out.”

“While some manufacturers are seeing increased turnover, most are seeing margin pressure and the overall picture is soft. Manufacturing and the export sector matters, and Government needs to show some real intent to address the structural currency issue.”

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Scoop Business: Productivity Commission To Look At Housing Land Supply

The Productivity Commission is to expand on its housing affordability report with an investigation into improving land supply and development capacity, particularly in areas with strong population growth. More>>

ALSO:

Forestry: Man Charged After 2013 Death

Levin Police have arrested and charged a man with manslaughter in relation to the death of Lincoln Kidd who was killed during a tree felling operation on 19 December 2013. More>>

ALSO:

Smells Like Justice: Dairy Company Fined Over Odour

Dairy company fined over odour Dairy supply company Open Country Dairy Limited has been convicted and fined more than $35,000 for discharging objectionable odour from its Waharoa factory at the time of last year’s ”spring flush” when milk supply was high. More>>

Scoop Business: Dairy Product Prices Decline To Lowest Since July 2012

Dairy product prices dropped to the lowest level since July 2012 in the latest GlobalDairyTrade auction, led by a slump in rennet casein and butter milk powder. More>>

ALSO:

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news