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

 


Exporters feeling better but cautious

Exporters feeling better but cautious

For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during February 2014, shows total sales in January 2014 increased 10.0% (year on year export sales increased by 32.56% with domestic sales decreasing 5.17%) on January 2013.

The NZMEA survey sample this month covered NZ$342m in annualised sales, with an export content of 49%.

Net confidence was at 21, down on December’s result of 30.

The current performance index (a combination of profitability and cash flow) is at 98.7, down from 101.7 in December, the change index (capacity utilisation, staff levels, orders and inventories) was at 102, down from 103 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 107.17, up on Decembers result of 103.67. Anything less than 100 indicates a contraction.

Constraints reported were 57% markets, 36% production capacity and 7% skilled staff.

Productivity for January was unchanged on last month.

Staff numbers January increased year on year by 0.93%.

All staff segments, tradespersons, operators/labourers, supervisors, managers and professional/scientists, reported a moderate shortage for January.

“This month continues the trend we have been seeing through recent months, with exports gaining ground and domestic sales falling. Some of this export improvement can be attributed to some particularly large respondents reporting significant year on year increases. Things are starting to look better on the surface, but many are still cautious,” says NZMEA Chief Executive John Walley.

“Indexes are again fairly mixed, with net confidence and performance down, while the forecast index improved.”

“Concern remains around our overvalued currency and the absence of any policy response, reducing margins and putting import competing manufacturers under price pressure. The signalled OCR increases by the Reserve Bank of New Zealand (RBNZ) over the coming months have the potential to make this worse.”

“There are other macro-prudential tools which can be adopted alongside the OCR to tackle inflation in the domestic sector without deflating the tradable sector further by appreciating our currency. For example, the LVR addition to the other macro-prudential tools now available to the RBNZ have shown some excellent traction, adding income to debt restrictions would provide a further and focused intervention tool to control debt that would not have the exchange rate kicker. Holding off on interest rates until the world gets back to normal would support the traded sector.”

”It is worth remembering that even with Terms of Trade at a 40 year high, rising 2.7% on the last quarter, largely driven by high export prices for our main commodities, we still struggle to balance our external position. Our trade balance has improved, from a negative trend throughout 2012 and the first half of 2013; to a trade surplus of $320m in January this year but our net external debt remains high at $144,426m, and our current account deficit is predicted to increase in the future.”

Ends

© 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