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


Election Uncertainy Hinders Manufacturing Recovery

7 October 1999


“Concern about the possible outcome of the elections, as well as anticipated action on the part of the Reserve Bank to tighten monetary policy, seem to be dampening the manufacturing sector’s recovery”, says David Moloney, President of the New Zealand Manufacturers Federation. Mr Moloney was commenting on the release of the WestpacTrust Analysis of Manufacturing for the June quarter.

“Based on March quarter figures, ManFed had been fairly confident the recovery underway in the manufacturing sector would strengthen as the year progressed. There have been some good signs; profits are up again and ETM exports continue to strengthen. But profit has been used to retire debt, rather than for reinvestment, and hours worked have continued to slide.

“One of the major factors contributing to the weak recovery is uncertainty over what may ensue after the elections and whether there is likely to be a Government prepared to take the steps necessary to foster economic growth.

Perceived lack of action over tax reform, a commitment by more than one of the
main political parties to turn the clock back on industrial relations and the ACC reforms, do not hold out the promise of an environment supportive of manufacturing.

“The other area of uncertainty relates to monetary policy and predictions that the Reserve Bank will move to tighten it before the end of the year.

“Despite the weakness of the recovery to date, the overall outlook for the sector is still reasonably bright with growth expected to pick up through the latter part of this year and into the next. A lot will, however, depend on the outcome of the elections and what the Reserve Bank decides to do.”
For further comment contact:


© Scoop Media

Business Headlines | Sci-Tech Headlines


Industry Report: Growing Interactive Sector Wants Screen Grants

Introducing a coordinated plan that invests in emerging talent and allows interactive media to access existing screen industry programmes would create hundreds of hi-tech and creative industry jobs. More>>


Ground Rules: Government Moves To Protect Best Growing Land

“Continuing to grow food in the volumes and quality we have come to expect depends on the availability of land and the quality of the soil. Once productive land is built on, we can’t use it for food production, which is why we need to act now.” More>>


Royal Society: Calls For Overhaul Of Gene-Technology Regulations

An expert panel considering the implications of new technologies that allow much more controlled and precise ‘editing’ of genes, has concluded it’s time for an overhaul of the regulations and that there’s an urgent need for wide discussion and debate about gene editing... More>>


Retail: Card Spending Dips In July

Seasonally-adjusted electronic card spending dipped in July by 0.1 percent after being flat in June, according to Stats NZ. Economists had expected a 0.5 percent lift, according to the median in a Bloomberg poll. More>>


Product Stewardship: Govt Takes More Action To Reduce Waste

The Government is proposing a new way to deal with environmentally harmful products before they become waste, including plastic packing and bottles, as part of a wider plan to reduce the amount of rubbish ending up in landfills. More>>


Earnings Update: Fonterra Sees Up To $675m Loss On Writedowns

“While the Co-op’s FY19 underlying earnings range is within the current guidance of 10-15 cents per share, when you take into consideration these likely write-downs, we expect to make a reported loss of $590-675 million this year, which is a 37 to 42 cent loss per share." More>>