Getting by, feeling worse - MEA Survey

Getting by, feeling worse - 5 April

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The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during March 2013, shows total sales in February 2013 increased 2.48% (export sales decreased by 5.60% with domestic sales increasing 15.83%) on February 2012.

The NZMEA survey sample this month covered NZ$347m in annualised sales, with an export content of 57%.

Net confidence fell to -27, down from the -9 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 100.5, up from 99.5 in February, the change index (capacity utilisation, staff levels, orders and inventories) fell to 98 from 100 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 100.5, down on January’s result of 102.75. Anything less than 100 indicates a contraction.

Constraints reported were 91% markets and 9% production capacity.

Staff numbers for February increased year on year by 3.27%.

“Exports sales have shown a strong falling trend through the back half of last year to date and positive sentiment has shown a similar falling trend since the beginning of last year. As in past surveys, there is consistent comment around the currency, and the pressure it is putting on margins.” says NZMEA Chief Executive John Walley.

“Domestic sales have a weaker and longer trend of improvement off a very low base; it is unlikely that the domestic market can make up for export sales if they continue to contract.”

“Overall investment is taking a consistent hit and seems to be compensated for by an increase in staff, chasing what sales might be available.”

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