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

 

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Real Estate: Investors Driving Up Auckland Housing Risk - RBNZ

The growing presence of investors in Auckland's property market is increasing the risks, and is likely to both amplify the housing cycle and worsen the potential damage from a downturn both to the financial system and the broader economy, said Reserve Bank deputy governor Grant Spencer. More>>

ALSO:

Annual Record: Overseas Visitors Hit 3 Million Milestone

Visitor arrivals to New Zealand surpassed 3 million for the first time in the July 2015 year, Statistics New Zealand said today. The record-breaking 3,002,982 visitors this year was 7 percent higher than the July 2014 year. More>>

ALSO:

The Future: Thirty Year Infrastructure Plan Released

The Thirty Year New Zealand Infrastructure Plan 2015 sets out New Zealand’s response to the infrastructure challenges we will face over the next three decades, Finance Minister Bill English says. More>>

ALSO:

Shopping: Online GST Discussion Document

GST: Cross-border services, intangibles and goods contains proposals to require overseas suppliers to register and return GST when they sell services (including online products such as e-books, music and videos) to New Zealand consumers. It also outlines the way forward for improving the collection of GST on all goods, including low-value imported goods. More>>

ALSO:

Keith Rankin: Auckland Slowdown?

Has the Auckland housing market turned? I went to a neighbourhood auction yesterday. Solid large 1950s' house on 1,000 square metres of land, sunny section, view over city from front of house, handy to train and to the expanding New Lynn retail and commercial hub. More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news