Find­ings from man­u­fac­tur­ers and ex­porters look gloomy

DEMM Engineering & Manufacturing - - NEWS -

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.”

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