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

 

Trade Plans: Prime Minister's Speech To International Business Forum

"The work to improve public services, build infrastructure, and solve social problems is possible only because we have enjoyed sustained, solid economic growth. A big reason for that is the Government’s consistent agenda of economic reform, and our determination to open up more opportunities for trade with the world." More>>

ALSO:

Media: TVNZ Flags Job Cuts To Arrest Profit Decline

Chief executive Kevin Kenrick said the changes were aimed at creating "a sustainable future video content business for TVNZ in an ever-changing media market." More>>

ALSO:

Reserve Bank: Wheeler Keeps OCR At 1.75%

Reserve Bank governor Graeme Wheeler kept the official cash rate unchanged at 1.75 percent, as expected, and reiterated his view that the benchmark rate doesn't need shifting for the foreseeable future. More>>

ALSO:

f work for Pumpkin Patch staff

Retail: Pumpkin Patch Brand, IP Sold To Catch Group

The receivers of failed children's clothing retailer Pumpkin Patch have confirmed that the company's brand and intellectual property have been sold to Australian online retailer Catch Group. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news