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


Export sales recover - 2 September

Export sales recover - 2 September

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during August 2011, shows total sales in July 2011 increased 13.5% (export sales increased by 16.4% with domestic sales increasing 11.2%) on July 2010.

The NZMEA survey sample this month covered NZ$439m in annualised sales, with an export content of 46%.

Net confidence rose to -22, up from the -38 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 96, up from 93 in June, the change index (capacity utilisation, staff levels, orders and inventories) went down to 99 from 102 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 103, up on June’s result of 99.75. Anything less than 100 indicates a contraction.

Constraints reported were 78% markets, 11% staff and 11% production capacity.

Staff numbers for July increased year on year by 2.8%.

“Export sales have recovered this month although continuing currency pressures will reduce returns,” says NZMEA Chief Executive John Walley. “Favourable conditions remain for those exporting to Australia and Asia driving the sales expansion.”

“The indexes and confidence measures are still a concern with the performance index in particular showing the loss of profitability and the confidence rating remaining in negative territory where it has been for six of the seven months surveyed so far this year. The number of pessimists has strong grown strongly as the no change group has contracted.”

“Overall the demand for New Zealand’s exports is holding up for the moment, but with the global outlook very uncertain this could change quickly.”

“Comments from the survey covered reduced margins due to the high New Zealand Dollar and concerns over whether demand from overseas markets will hold up. Christchurch respondents also noted that ongoing impacts from the earthquakes were upsetting staff and worrying customers.”

“With the issues in the United States and Europe it is likely that exchange rate pressures will worsen over the next few months. This will continue to threaten the viability of exports to those areas.”

“A response to the actions of other countries who seek to weaken their currencies should be a priority for the Government and the Reserve Bank. The exchange rate as it stands is a punitive tax on exporters and encourages spending overseas; hardly what is needed to rebalance the economy.”

© Scoop Media

Business Headlines | Sci-Tech Headlines


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>

Civil Contractors: Massive Rebound In Civil Construction Business Confidence

New Zealand’s civil construction industry is riding a massive rebound in post-pandemic business confidence – but this may be undermined by skills shortages, which continue to be the industry’s number one challenge... More>>

Energy: Feeling Our Way Towards Hydrogen - Tina Schirr

Right now hydrogen is getting a lot of attention. Many countries are focusing on producing hydrogen for fuel, or procuring it, or planning for its future use... More>>

ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>

Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>

Real Estate: June Home Transfers Remain High
There were 44,517 home transfers in the June 2021 quarter, the highest June quarter figure since 2016, Stats NZ said today. The number of home transfers was very similar to the March 2021 quarter and was up 18,252 from the June 2020 quarter... More>>