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


Sales Still Growing, Confidence Still Falling

29 November 2004 IMMEDIATE RELEASE

Sales Still Growing, Confidence Still Falling

The latest Canterbury Manufacturers’ Association Survey of Manufacturers completed during November 2004 shows total sales in October 2004 were up over 9%, domestic sales increased about 1.6% and export sales increased by nearly 19% on October 2003.

“Again, sales increased but confidence dropped to the lowest we have seen in 2004. Domestic sales growth dropped back with export sales growth remaining strong,” said John Walley, Chief Executive of the Canterbury Manufacturers’ Association. “Overall sales are strong, margins are thin, and confidence is bleeding away even in the face of some improved returns from sales in Australian dollars.”

“Whilst some respondents report very strong markets, others see the future very differently – in the latter group, comments on Free Trade Agreements, China (RMB peg) and import pressure predominate.”

“Our net leading indicators for profit, sales, investment and staff continue the downward trend evident for most of 2004.”
“Increasingly, the market is being identified as the major constraint by our survey; this indicates that local firm issues – staff, capacity and capital – are fading as conditions in the wider economy and markets weaken. That said, there are a growing number of comments indicating an intention to lift prices over the next few months.”
A net confidence of zero, down from 7 last month, shows the trend for 2004 seems to be a progressive erosion of confidence.
Staff numbers were up about 1%; the skilled staff situation remains tight but seems to be easing a little.
Around 76% of respondents indicated market conditions as the major constraint; finding staff a problem for 6%, with capacity an issue for 18%.


Survey of Business Conditions – October 2003 compared with October 2004

SAMPLE SIZE: The Survey respondents represent elaborate transformed manufacturers with annual sales of approximately $723 million.

(The table below represents the above returns expressed as percentages)
Oct Sept
TOTAL TURNOVER: Export /Domestic ratio 49/51 46/54
% Change in Total Turnover INCREASED 9.32 17.19

DOMESTIC TURNOVER: % of respondents reporting a rise 53 64
% of respondents reporting a fall 33 21
% of respondents reporting no change 13 14
% Change in Ave Domestic Turnover INCREASED 1.59 12.21

EXPORT TURNOVER: % of exporters reporting a rise 72 70
% of exporters reporting a fall 9 30
% of exporters reporting no change 18 0
% Change in Average Export Turnover INCREASED 18.72 23.72

STAFF NUMBERS: % of respondents reporting a rise 52 20
% of respondents reporting a fall 29 60
% of respondents reporting no change 17 20
% Change in Average Staff Numbers INCREASED 0.93 -3.06

(The table below represents the above returns expressed as percentages. Last month in brackets.)

Large Fall
(Over 15%) Modest Fall
(2.5%-15%) No Change
(Within 2.5%) Modest Rise
(2.5%-15%) Large Rise
(Over 15%)
Oct Sept Oct Sept Oct Sept Oct Sept Oct Sept
Profitability (YoY) 18 8 0 8 47 38 12 31 24 15
Cashflow (YoY) 18 0 18 8 35 38 6 31 24 23
Exchange Rate (YoY) 18 15 29 23 35 46 12 8 6 8
Investment Forecast 18 21 18 7 24 14 24 50 18 7
Sales Forecast 6 7 6 7 35 29 34 43 18 14
Profit Forecast 18 7 6 7 47 43 12 21 18 21
Staffing Forecast 6 7 6 7 53 50 24 21 12 14
Confidence Very
Negative Negative Neutral Positive Very
6 14 24 14 41 36 18 21 12 14
Constraint Production Skilled Staff Capital Market
18 29 6 21 0 0 76 50

Net Confidence Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec
2003 +24 +21 +12 -11 -5 +12 -6 0 +11 +40 +29 +33
2004 +5 +19 +41 +41 +36 +50 +12 +20 +7 0


© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Porirua Most Expensive Region To Rent, According To Trade Me

A rental website shows this town is now New Zealand's most expensive region to rent a house, ahead of Wellington and Auckland cities. More>>


Stats NZ: Nearly 1,000 More Big Businesses Now Than Two Decades Ago – Media Release

There are now 2,690 big businesses in New Zealand employing more than 100 staff – nearly 1,000 or 58 percent more than 20 years ago, Stats NZ said today. Over the 20 years to February 2020, the total number of enterprises in New Zealand increased ... More>>


RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


CERT NZ: Malicious Computer Virus Targeting New Zealanders

CERT NZ, the government agency which supports organisations and individuals affected by cyber security incidents, says a recent surge of increasingly sophisticated malware attacks is affecting everyday New Zealanders as well as large organisations. The ... More>>


Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>