Good news glimpse from Jan business survey

Export sales rose 7.3pc in January, says the NZ Manufacturers and Exporters Assn

A glimpse of positive news has emerged from the latest survey of business conditions run by the NZ Manufacturers and Exporters Association.

Looking at conditions in January, the survey shows export sales rising by 7.3 per cent, but a 3 per cent fall in domestic sales.

Net confidence among those surveyed rose to -54, up from the -73 result reported last month.

All respondents reported markets as their most significant constraint, and that their staff numbers in January had fallen by 5 per cent when compared with the same month last year.

"Sales revenue held up last month despite declining index numbers and continuing concerns over markets," said association chief executive John Walley. "With the lower dollar exporters are getting larger margins but volumes are dropping. Poor local demand has resulted in reduced domestic sales."

"Overall confidence has risen again but it is worth noting there was still very little positive sentiment. The confidence rating has now been in negative territory for a full year, which is a worrying sign given that investment in the tradeable sector is usually the spark to pull the country out of recession."

As interest rate cuts and tax cuts, along with " a raft of stimulus measures" fed through into the global and local economy, "a reset in the minds of consumers becomes important, so that some of the money is spent, rather than being used to retire debt or increase savings," said Walley.


HERALD ONLINE