WELLINGTON: The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during June 2016, shows total sales in May 2016 increased 5.37% (year on year export sales increased by 1.43% with domestic sales increasing by 13.87%) on May 2015. In the 3 months to May, export sales increased an average of 0.5%, and domestic sales increased 3.9%. The NZMEA survey sample this month covered NZ$347m in annualised sales, with an export content of 66%.
Net confidence fell to 33, down from 40 in April. The current performance index (a combination of profitability and cash flow) is at 102, up from 99 last month, the change index (capacity utilisation, staff levels, orders and inventories) was at 101, no change from the last survey, and the forecast index (investment, sales, profitability and staff) is at 104, up on the last result of 102. Anything over 100 indicates expansion. Constraints reported were 44% markets, 28% production capacity, 17% skilled staff, and 11% capital.
A net 22.22% of respondents reported productivity increases for May. Staff numbers for May increased 0.73% year on year. Supervisors, tradespersons, managers, professional/scientists reported a moderate shortage and operators/labourers reported a minor shortage. “May’s export sales moved back into year on year improvements, however modest, after a fall last month. On the 3 month average measure, exports remained slightly positive at 0.5%. Domestic sales showed a large year on year increase, 13.87% in May, a significant improvement on the 2.72% increase last month, and the year on year fall seen in March. May’s improvement moved the 3 month average up to 3.9%.” says Dieter Adam, Chief Executive of the NZMEA.
