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

 

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news