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

 


NZMEA Survey: Sales up, sentiment mixed

Sales up, sentiment mixed - 6 June

For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during May 2014, shows total sales in April 2014 increased 4.93% (year on year export sales increased by 12.83% with domestic sales decreasing 1.71%) on April 2013.

The NZMEA survey sample this month covered NZ$440m in annualised sales, with an export content of 49%.

Net confidence was at 16, up on March’s result of 0.

The current performance index (a combination of profitability and cash flow) is at 87.7, down from 101.7 in March, the change index (capacity utilisation, staff levels, orders and inventories) was at 98, down from 101 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 105.17, up on March’s result of 104. Anything less than 100 indicates a contraction.

Constraints reported were 68% markets, 21% production capacity and 11% skilled staff.

Net 26% of firms reported a modest fall in productivity for April.

Staff numbers for April increased year on year by 2.08%.

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

“We again see year on year domestic sales decreasing, while export sales improved off a low base a year ago. Confidence recovered slightly back up to 16 from 0, while performance and change indexes indicate contraction. Staff numbers stayed with the small positive trend,” says NZMEA Chief Executive John Walley.

“The high exchange rate featured in many comments, and the pressure is evident by the market constraint increasing to 68% from 53% last survey, as well as the large fall in the performance index, which takes into account profitability, cash flow and the effect of the exchange rate on margins. The cross rate with Australia received special mention by many, cutting margins and increasing competition. The longer this continues, the greater will be the negative impact on future investment, innovation and competitiveness of manufacturers. Recent comments by the Reserve Bank of New Zealand suggested they would intervene if the right opportunity arose, although this has yet to eventuate.”

“The 2014 Budget was much as expected and offered little for the traded sector, other than some modest increasing in funding in certain areas, such as NZTE. The focus stayed on reaching Government surplus, rather than any particular effort aimed at correcting our negative external balance.”

“To this point the tradable sector has seen initiatives from Labour in regard to specific policy and more generally a revised Policy Targets Agreement that would add the external balance in conjunction with inflation as policy targets. We hope to see much more debate in these areas prior to the election.”


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

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news