By ELLEN READ
More than three quarters of Auckland manufacturers surveyed by the Employers and Manufacturers Association believe their profits will remain the same or improve over the coming month.
The association's latest business conditions survey - which questioned 30 businesses - showed that 79 per cent expected profits to remain the same or improve and 86 per cent expected turnover to stay the same or improve.
Eighty three per cent said they expected prices to remain stable.
"The figures show a steady rise in optimism. However few signs of new investment have emerged," association spokesman Bruce Goldsworthy said.
Only 19 per cent of firms were running at full capacity, and average capacity was running at 70 per cent overall, the survey showed.
"Most businesses can see neither new sales opportunities nor the profit to be made by investing in new equipment and jobs," Mr Goldsworthy said.
Despite this, firms had shown renewed interest in staff training.
An improvement in cashflow was also encouraging, he said.
The survey identified difficulties in recruiting suitable management and professional staff.
Other anecdotal reports suggested that a further round of skill shortages, which would hamper further export growth, could be imminent.
Fewer respondents were worried about the exchange rate - 29 per cent in the current survey, down from the previous result of 33 per cent.
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