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

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news