Findings from manufacturers and exporters look gloomy
Findings from New Zealand Manufacturers and Exporters Association ( NZMEA) Survey of Business Conditions shows total sales in September 2013 decreased 7.88 per cent ( export sales decreased by 17.91 per cent with domestic sales increasing 5.63 per cent) on September 2012.
The current performance index ( a combination of profitability and cash f low) is at 98.3, down from 100.7 in August, the change index ( capacity utilisation, staff levels, orders and inventories) was at 100, down from 102 in the previous monthly survey, and the forecast index ( investment, sales, profitability and staff) is at 102, down on August’s result of 105. Anything less than 100 indicates a contraction.
There was a moderate staff shortage reported for operator/ labourers, tradespersons, supervisors, and professional/ scientists and managers.
NZMEA CEO John Walley says: “Confidence and index measures have all fallen, making this survey generally less positive. The Reserve Bank of New Zealand has made comment that the high dollar is helping to keep inflation under control, giving them the ability to lower or delay their future OCR increases.
“While this is great for consumers, the overvalued currency is having a damaging effect on our exporters and import competing manufacturers.”