Manufacturing sales grow

Last updated 11:14 08/08/2014

Relevant offers


Weight Watchers campaign joins list of PR blunders Skills shortage results in firms looking internally to fill roles, recruitment firm says Pumpkin Patch in trading halt - too much debt, not enough capital British American Tobacco offers to buy Reynolds in US$47 billion deal Backlog of defective buildings and shoddy workmanship sparks calls for building warranties Ikea NZ Facebook page set up: Is it finally coming to NZ? Auckland Council and contractors ordered to pay $120,000 to the family of killed rubbish truck worker 71yo asked to stand on hot water cylinder to plug in phone after bizarre UFB install Tuanz welcomes Vodafone offer to keep internet users connected Travel companies adapting to 'luxury' demands of young travellers

Manufacturers' sales continue to grow, but exporters remain worried about the high New Zealand dollar.

The latest New Zealand Manufacturers and Exporters Association survey of business conditions shows total manufacturing sales in June increased by 28.38 per cent.

Year-on-year export sales increased by 30.45 per cent, with domestic sales increasing 26.38 per cent.

The survey sample for June covered $552 million in annualised sales, with an export content of 50 per cent.

Association chief executive John Walley said June had been "another very good month for manufacturers and exporters, with turnover improving both domestically and in exports".

However, manufacturers surveyed were less confident about the future than in the previous survey.

"While sales continue to grow, comments indicate there is considerable concern around the dollar," Walley said.

"The market constraint, at its highest since May 2013, indicates some demand softness across trading partners. Production capacity was not indicated as a major problem in our last survey.

"In the latest OCR [official cash rate] statement, the Reserve Bank of New Zealand made a real effort to talk down our currency, which was not responding to the significant fall in dairy prices since January 2014. This had some success, with the currency pegging back nearly 4 per cent after approaching a post-float high in early July.

"The fact the currency has remained above January levels despite these falls must bring into question the idea of auto-stabilisation of returns around commodity prices and exchange rates.

"The RBNZ need to do more than just talk to bring the currency down to justifiable and sustainable levels."

Staff numbers for June increased year on year by almost 5 per cent.

Manufacturers wanting tradespeople, operators-labourers, supervisors, managers and professional-scientists all reported a moderate shortage.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content