Ex­ports sales boosted in July – 4 Septem­ber

DEMM Engineering & Manufacturing - - NEWS -

The latest New Zealand Man­u­fac­tur­ers and Ex­porters As­so­ci­a­tion (NZMEA) Sur­vey of Busi­ness Con­di­tions com­pleted dur­ing Au­gust 2015, shows to­tal sales in July 2015 in­creased 2.48 per­cent (year on year ex­port sales in­creased by 4.70 per­cent with do­mes­tic sales de­creas­ing 0.18 per­cent) on July 2014.

The NZMEA sur­vey sam­ple this month cov­ered NZ$511m in an­nu­alised sales, with an ex­port con­tent of 56 per­cent. Net con­fi­dence rose to 12, up from 6 in June.

The cur­rent per­for­mance in­dex (a com­bi­na­tion of prof­itabil­ity and cash flow) is at 107, up from 102.3 last month, the change in­dex (ca­pac­ity util­i­sa­tion, staff lev­els, or­ders and in­ven­to­ries) was at 97, up from 96 in the last sur­vey, and the forecast in­dex (in­vest­ment, sales, prof­itabil­ity and staff) is at 107.33, up on the last re­sult of 103.33. Any­thing over 100 in­di­cates ex­pan­sion. Con­straints re­ported were 80 per­cent mar­kets, 12 per­cent pro­duc­tion ca­pac­ity, four per­cent skilled staff and four per­cent cap­i­tal.

Net 24 per­cent of firms re­ported a mod­est rise in pro­duc­tiv­ity in July. Staff num­bers for July de­creased 1.78 per­cent year on year. Trades­per­sons, su­per­vi­sors, man­agers, pro­fes­sional/sci­en­tists and op­er­a­tors/labour­ers all re­ported a mod­er­ate short­age.

“Ex­port sales bounced back in July, mov­ing back into ex­pan­sion and im­prov­ing 4.7 per­cent on July 2014. Do­mes­tic sales im­proved once again; how­ever are still yet to break back into year on year in­creases, “says NZMEA Chief Ex­ec­u­tive Di­eter Adam.

“Man­u­fac­tur­ers and ex­porters con­tinue to feel more pos­i­tive, with sen­ti­ment im­prov­ing across the board, in­clud­ing con­fi­dence and all three in­dex mea­sures up on June’s re­sult. Staff num­bers fell year on year for the first time since Fe­bru­ary, how­ever over the last two years trend staff lev­els in man­u­fac­tur­ing have been pos­i­tive.

“The lower cur­rency con­tin­ues to be com­mented on as a pos­i­tive for most, putting their mar­gin and ex­port com­pet­i­tive­ness in a bet­ter po­si­tion. Con­versely, there are some who have seen in­put costs rise which can be a chal­lenge when prices can­not be ad­justed, but on bal­ance, the lower cur­rency is help­ing the man­u­fac­tur­ing and ex­port­ing sec­tor. We hope this rel­a­tively good pe­riod will en­cour­age fur­ther in­vest­ment in the sec­tor to boost the fu­ture com­pet­i­tive­ness, in­no­va­tion and ca­pa­bil­ity of man­u­fac­tur­ers and ex­porters.

“Last weeks Over­seas Mer­chan­dise Trade re­lease by Sta­tis­tics New Zealand also had some pos­i­tive re­sults for man­u­fac­tur­ing ex­porters, with me­chan­i­cal ma­chin­ery and equip­ment ex­ports ex­pe­ri­enc­ing an in­crease of 12.5 per­cent on July 2014, and elec­tri­cal ma­chin­ery and equip­ment in­creased 20 per­cent over the same time.” says Di­eter Adam.

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