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


Sales bounce back but still in the red

Sales bounce back but still in the red, confidence improves - 7 August

For results tables and historical data click here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during July 2015, shows total sales in June 2015 decreased 6.42% (year on year export sales decreased by 11.49% with domestic sales decreasing 1.35%) on June 2014.

The NZMEA survey sample this month covered NZ$438m in annualised sales, with an export content of 47%.

Net confidence rose to 6, up from -13 in May.

The current performance index (a combination of profitability and cash flow) is at 102.3, up from 96.3 last month, the change index (capacity utilisation, staff levels, orders and inventories) was at 96, down from 100 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 103.33, up on the last result of 102.5. Anything over 100 indicates expansion.

Constraints reported were 78% markets, 11% production capacity, 5.5% skilled staff and 5.5% capital.

Net 17% of firms reported a modest rise in productivity in June.

Staff numbers for June increased 4.01% year on year.

Tradespersons, supervisors, managers, professional/scientists and operators/labourers all reported a moderate shortage

“Sales in June remained in the negative year on year, although less negative than May’s result. Domestic turnover improved significantly on last month, but remained slightly negative, while export turnover worsened somewhat on May.” says NZMEA Chief Executive Dieter Adam.

“This month sentiment was generally up, with net confidence improving back into the positive and two out of three index measures improved, with the performance index moving back into expansion. Interestingly, capital was reported as a constraint for the first time since February and the market constraint fell back on last month, potentially reflecting the recent falls in our currency, but remained significantly higher than the other constraints.

“Staff numbers for June also improved, at the highest rate since March. This weeks Household Labour Force Survey release by Statistics New Zealand showed a similar positive result for manufacturing employment, with people employed in manufacturing seeing the largest annual increase of any sector, overtaking construction which has recently led they way.

“Numerous manufacturers are reporting diversification of their businesses as an opportunity – manufacturers have continued to adapt their business models and products in response to ongoing volatile global conditions. Auckland and Christchurch also remain areas of opportunity for those manufacturers related to construction and infrastructure.

“Australian and European markets continue to be reported as areas of weakness. The second cut in the OCR by the Reserve Bank of New Zealand (RBNZ) was welcome news for manufacturers and exporters. While this didn’t have a direct downward effect on the currency at the time, it will help solidify the current downward trend. As RBNZ Governor Wheeler said in a recent speech, “We believe that further exchange rate depreciation is necessary given the weakness in export commodity prices and the projected deterioration in the country’s net external liabilities over the next two years”.

"We encourage the RBNZ to continue its easing stance, provided risks in the housing market are carefully considered.” says Dieter Adam.

For a picture of Dieter, click here.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Statistics: Building Activity Down In September Quarter
The volume of building activity in New Zealand fell 8.6 percent in the September 2021 quarter, compared with the June 2021 quarter, Stats NZ said today. Residential building activity fell by 6.4 percent in the September 2021 quarter, while non-residential building activity fell 12 percent... More>>

Government: David McLean Appointed As KiwiRail Chair

David McLean has been appointed as Chair of KiwiRail Holdings Ltd, the Minister for State Owned Enterprises Dr David Clark and Minister of Finance Grant Robertson announced today... More>>

Dairy NZ: ‘More Milk From Fewer Cows’ Trend Continues In A Record Year
Vodafone says it has 10,000 customers using its Wi-Fi Calling service. It took less than three months to reach that milestone; the service began operating in September... More>>

Xero: Data Reveals ICT Expenditure Key To Small Business Sales Growth
Xero, the global small business platform, today released a new report which shows New Zealand small business ICT expenditure has increased 25 percent compared to pre-pandemic levels - more than the UK (20%) and Australia... More>>

Fonterra: Lifts Forecast Farmgate Milk Price Range And Revises Earnings Guidance At First Quarter Update

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range, reported a solid start to the 2022 financial year and revised its earnings guidance... More>>

Canterbury Museum: New Research - Bald Haast's Eagle Feasted On Moa Guts

New Zealand’s extinct Haast’s Eagle (Hieraaetus moorei), the largest known eagle, gulped down viscera like a vulture and may even have been bald, new research suggests... More>>

ABC Business Sales: Demand High For Covid-proof Businesses
Despite the continuing challenges facing businesses in this Covid environment, right now there are more buyers looking for a small-medium sized business than there are sellers in the market... More>>