KEY POINTS:
A survey of manufacturing activity shows a strong rise in export sales, but confidence remains negative with only a small improvement from a month earlier.
The monthly New Zealand Manufacturers and Exporters Association survey showed total sales in April up 27 per cent compared to a year earlier. Export sales were up 56 per cent and domestic sales up 10 per cent. Net confidence was -33 per cent in April, slightly better than -36 in March.
The NZMEA survey sample for the April survey covered $426 million in annualised sales, with an export content of 45 per cent.
CEO John Walley said having only a slight lift in confidence, while turnover was up across the board, reflected uncertainty within overseas markets, in particular the United States.
Manufacturing was facing almost across the board cost increases, he said. The message from struggling industries was that Government action was long overdue to provide better policy support for the external sector, before more companies headed offshore. In the latest survey, the performance index (profitability and cash flow) is 98, down from the previous month's 98.5, with anything less than 100 indicating contraction.
The change index (capacity utilisation, staff levels, orders and inventories) stayed at 100, and the forecast index (investment, sales, profitability and staff) is at 99.8, down from 101.
- NZPA
