Moving towards normal but domestic sales low - 6 May

Moving towards normal but domestic sales low - 6 May

Historical survey data can be found here.

The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during April 2011, shows total sales in March 2011 decreased 7% (export sales decreased by 2% with domestic sales decreasing 11%) on March 2010.

The NZMEA survey sample this month covered NZ$582m in annualised sales, with an export content of 49%.

Net confidence rose to -10, up from the -13 result reported last month.

The current performance index (a combination of profitability and cash flow) is at 100.5, up from 97.5 in February, the change index (capacity utilisation, staff levels, orders and inventories) went up to 102 from 101 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 103.25, up on February’s result of 101.25. Anything less than 100 indicates a contraction.

Constraints reported were 70% markets and 30% production capacity.

Staff numbers increased slightly for March, year on year.

“Sales levels have got back to some semblance of normality post the earthquake with export sales in particular recovering. Some disruption has persisted in the domestic market,” says NZMEA Chief Executive John Walley.

“It’s encouraging that the performance index has bounced back so quickly after the disruption in February and this reflects the considerable efforts made by manufacturers to restore production.”

“Production capacity was mentioned as the primary constraint by 30 percent of respondents, indicating that some problems remain with those shifting premises or having part of their building out of use.”

“The exchange rate remains the biggest problem. Exporters selling into European and North American markets see little return with the exchange rate at these elevated levels. Some urgent action is needed.”

“Particularly for those who have gone to extraordinary lengths to keep their businesses running it is frustrating to see the Government sitting idly by while our export competitiveness is threatened. New Zealand cannot improve living standards on the export of commodity products alone; only the successful export of differentiated products can close the wealth gap between New Zealand and other developed nations.”

The New Zealand Manufacturers and Exporters Association survey gathers results from members around New Zealand. It provides a monthly snapshot of manufacturers and exporters’ sales and sentiment.

ENDS

© Scoop Media