Exports fall after positive trend
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The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during
January 2015, shows total sales in December 2014 increased 0.02% (year on year export sales decreased by 7.88% with
domestic sales increasing 14.07%) on December 2013.
The NZMEA survey sample this month covered NZ$332m in annualised sales, with an export content of 59%.
Net confidence rose to 38, up from 27 in November.
The current performance index (a combination of profitability and cash flow) is at 101.3, up from 97.7 last month, the
change index (capacity utilisation, staff levels, orders and inventories) was at 103, up from 99 in the last survey, and
the forecast index (investment, sales, profitability and staff) is at 108.33, up on the last result of 107.83. Anything
less than 100 indicates a contraction.
Constraints reported were 63% markets, 19% production capacity, 13% skilled staff and 6% capital.
Net 13% of firms reported a modest rise in productivity for December.
Staff numbers for December increased 4.18%.
Tradespersons, supervisors, managers, operators/labourers and professional/scientists reported a moderate shortage.
“This month saw domestic activity improve on the back of a negative trend in the second half of 2014, while year on year
export sales remained negative for the second month after what was a very positive year for exports,” says NZMEA Chief
Executive John Walley.
“November and December reported a fall in exports sales, the first negative results since September 2013.”
“Confidence improved along with all three index measures, showing firms still had positive future expectations, while
staff numbers increased 4.18% year on year. The market constraint increased and comments focused on the weak Australian
dollar.”
“The Reserve Bank of New Zealand (RBNZ) held the OCR at 3.5% in January, saying they expect to hold rates for some time,
but changing their language to open up the possibility of future rate cuts, triggering some welcome exchange rate
depreciation. Since then the RBNZ has continued to express concern over an overvalued exchange rate and again repeated
they still anticipate further “significant depreciation.”
“Any moves the RBNZ can make to speed up the correction of our currency would support the tradable sector – the exchange
rate has a significant effect on the margins and competitiveness of our manufacturers and exporters.”
ends