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

 


Better, but currency a worry

- 4Better, but currency a worry


For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during March 2014, shows total sales in February 2014 increased 9.16% (year on year export sales increased by 14.87% with domestic sales increasing 3.99%) on February 2013.

The NZMEA survey sample this month covered NZ$406m in annualised sales, with an export content of 50%.

Net confidence was at 35, up on January’s result of 21.

The current performance index (a combination of profitability and cash flow) is at 98.7, unchanged from January, the change index (capacity utilisation, staff levels, orders and inventories) was at 105, up from 102 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 107.67, up on Januarys result of 107.17. Anything less than 100 indicates a contraction.

Constraints reported were 59% markets, 24% production capacity and 18% skilled staff.

Net 65% of firms reported a modest rise in productivity for February.

Staff numbers in February decreased year on year by 0.19%.

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

“This month’s survey shows a general improvement on nearly all measures other than the small decrease in staff numbers.”

“We have now seen the first, of several, OCR increases by the Reserve Bank of New Zealand (RBNZ) despite our overvalued currency. Following this increase we have seen the dollar reach new post float highs on the Trade Weighted Index (TWI). The RBNZ was clear about their traffic light system for judging whether currency intervention is warranted, shedding further crocodile tears and admitting to deliberately deflating the tradeable sector in line with the tightening bias in monetary policy – we have seen all this before.”

“Interest rates are a blunt tool and fail to target inflation at the source in our domestic economy; the traded sector is not the source of inflation but deflation there does lower theheadline result.”

“As this trend continues the tradable sector will continue to cease operation in New Zealand, through closure or relocation, and our economy will regress to the export of minimally processed raw materials. There is not much added value in that strategy. We need to think beyond milk powder and logs.”

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Half Full: Fonterra Raises Forecast Milk Price

Fonterra Co-operative Group Limited today increased its 2016/17 forecast Farmgate Milk Price by 50 cents to $4.75 per kgMS. When combined with the forecast earnings per share range for the 2017 financial year of 50 to 60 cents, the total payout available to farmers in the current season is forecast to be $5.25 to $5.35 before retentions. More>>

ALSO:

Keep Digging: Seabed Ironsands Miner TransTasman Tries Again

The first company to attempt to gain a resource consent to mine ironsands from the ocean floor in New Zealand's Exclusive Economic Zone has lodged a new application containing fresh scientific and other evidence it hopes will persuade regulators after their initial application was turned down in 2014. More>>

Wool Pulled: Duvets Sold As ‘Premium Alpaca’ Mostly Sheep’s Wool

Rotorua business Budge Collection Limited (Budge) and sole director, Sun Dong Kim, were convicted and fined a total of $71,250 in Auckland District Court after each pleading guilty to four charges of misrepresenting how much alpaca fibre was in their duvets. More>>

Reserve Bank: Labour Calls For Monetary Policy To Expand Goals

Labour's comments follow a speech today by RBNZ governor Graeme Wheeler in which Wheeler sought to answer critics who variously say he should stop lowering interest rates, lower them faster, or that inflation-targeting should no longer be the primary goal of the central bank's activities. More>>

ALSO:

BSA Extension And Sunday Morning Ads: Digital Convergence Bill Captures Online Content

Broadcasting Minister Amy Adams has today announced the Government’s plans to update the Broadcasting Act to better reflect today’s converged market... The Government considered four areas as part of its review into content regulation: classification requirements, advertising restrictions, election programming and contestable funding. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news