Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Prices to rise, profit & business confidence drop

Price rises expected; profit and business confidence flatten off

A sharp jump in the number of companies expecting prices to rise is being reflected in a flattening off of both profit expectations and business confidence, according to the Employers and Manufacturers Association Survey of Business Conditions for February.

The survey of northern manufacturers shows 31 per cent of respondents are now expecting price rises, up from 19 per cent for the January survey. The numbers expecting profits to improve has approximately halved from 48 per cent in January to 26 per cent this month. Confidence is down, from 48 per cent expecting an improvement last month, to 22 per cent this month. However the scores for those expecting both profitability and confidence to stay the same went up substantially.

“The cost of accident insurance is one of the change factors affecting the outlook on price rises,” said Bruce Goldsworthy, director of EMA’s Manufacturers’ Division.

“Two months ago the survey had not begun to register any cost concerns from ACC; last month five per cent of respondents noted it, and this month 13 per cent are saying they think it could result in price rises because of anticipated higher workplace accident insurance costs.

“The number of respondents expecting to lift their prices because of higher raw material costs brought about by the low exchange rate and other factors, has gone down, to 53 per cent this month from 63 per cent last month.

“In spite of the flattening off trend, the demand for more staff is on the up and up. The number of respondents expecting to increase their staff has doubled from 11 to 22 per cent over the past month while those reporting difficulties recruiting skilled staff continues to grow.

“This month 56 per cent reported skilled people on the labour market are scarce; last month the figure was 45 per cent and the month before that, 33 per cent.

“For the third consecutive month investment intentions have remained high and stable, which augurs well both for developing more skills and plant capacity. 74 per cent say they will be investing in training, and 63 per cent in more equipment.

“Overall, average domestic turnover for February increased by 7 per cent, and export turnover by 9 per cent compared to the same period 12 months ago.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Sector Opposes Bill: Local Government Bill Timeframe Extended

The Minister of Local Government Peseta Sam Lotu-Iiga has asked the Select Committee to extend the report back date for the Local Government Act 2002 Amendment Bill (No 2). More>>


Breed Laws Don’t Work: Vets On New National Dog Control Plan

It is pleasing therefore to see Louise Upston Associate Minister for Local Government calling for a comprehensive solution... However, relying on breed specific laws to manage dog aggression will not work. More>>


Not Waiting On Select Committee: Green Party Releases Medically-Assisted Dying Policy

“Adults with a terminal illness should have the right to choose a medically assisted death,” Green Party health spokesperson Kevin Hague said. “The Green Party does not support extending assisted dying to people who aren't terminally ill because we can’t be confident that this won't further marginalise the lives of people with disabilities." More>>


General Election Review: Changes To Electoral Act Introduced

More effective systems in polling places and earlier counting of advanced votes are on their way through proposed changes to our electoral laws, Justice Minister Amy Adams says. More>>

Gordon Campbell: On Our Posturing At The UN

In New York, Key basically took an old May 2 Washington Post article written by Barack Obama, recycled it back to the Americans, and still scored headlines here at home… We’ve had a double serving of this kind of comfort food. More>>


Treaty Settlements: Bills Delayed As NZ First Pulls Support

Ngāruahine, Te Atiawa and Taranaki are reeling today as they learnt that the third and final readings of each Iwi’s Historical Treaty Settlement Bills scheduled for this Friday, have been put in jeopardy by the actions of NZ First. More>>


Gordon Campbell: On The Damage De-Regulation Is Doing To Fisheries And Education, Plus Kate Tempest

Our faith in the benign workings of the market – and of the light-handed regulation that goes with it – has had a body count. Back in 1992, the free market friendly Health Safety and Employment Act gutted the labour inspectorate and turned forestry, mining and other workplace sites into death traps, long before the Pike River disaster. More>>

Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news