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


Confidence and domestic sales down, exports up

Confidence and domestic sales down, exports up - 2 May

For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during April 2014, shows total sales in March 2014 increased 12.57% (year on year export sales increased by 29.33% with domestic sales decreasing 3.05%) on March 2013.

The NZMEA survey sample this month covered NZ$403m in annualised sales, with an export content of 55%.

Net confidence was at 0, down on February’s result of 35.

The current performance index (a combination of profitability and cash flow) is at 101.7, up from February’s result of 98.7, the change index (capacity utilisation, staff levels, orders and inventories) was at 101, down from 105 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 104, down on February’s result of 107.67. Anything less than 100 indicates a contraction.

Constraints reported were 53% markets, 20% capital, 13% production capacity and 13% skilled staff.

Net productivity was unchanged on last month.

Staff numbers for March increased year on year by 0.33%.

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

“This month showed generally more of what we have been seeing over the last few months, domestic sales falling (it is worth noting that few of our members are directly related to construction), while export sales increases, however export sales are returning little margin with an elevated currency. Net confidence fell, indexes were mixed and staff numbers increased slightly.”

“Comments were also mixed, but it is clear the exchange rate is having an effect on those supplying the domestic economy by increasing import competition, while remaining an issue for exporters.”

“The Reserve Bank of New Zealand (RBNZ) raised interest rates for the second time last week which puts further pressure on the exchange rate. The RBNZ keeps on saying that the current level of our currency is not sustainable but does nothing in that regard other than welcome the deflationary impact of an appreciating currency.”

“If the current high levels continue, the tradable sector will go on suffering for the sake of some reduction of inflationary pressures through lower import prices. Does this make sense, when the success of our tradable sector is vital to our economic future?”

“What is the message to the traded sector? Suck it up?”

“It was great to see some progress in this regard by Labour, who announced their proposed reform to Monetary Policy earlier this week. These are changes that the tradable sector needs, and in turn will have positive effects on the rest of the economy. We hope this spurs constructive discussion on the economy and the Government look at this as a possible change, rather than simply dismissing its potential.”

“A continued single minded focus on inflation with no regard for the external balance could well result in an economy struggling to function as capacity in the added value traded sector falls away.”


The New Zealand Manufacturers and Exporters Association survey gathers results from members around New Zealand. It provides a monthly snapshot of manufacturers and exporters’ sales and sentiment.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news