Manufacturers showing some optimism

Manufacturers are showing some signs of optimism in the New Zealand Manufacturers and Exporters Association's latest monthly survey.

The survey's forecast index - which covers investment, sales, profitability and staff - moved into the positive for the first time in over a year with a reading of 103.8 in October. Anything less than 100 indicates a contraction.

The change index - capacity utilisation, staff levels, orders and inventories - lifted to 101 from 95 the month before, while the current performance index - profitability and cash flow - was at 98.5 from 98. Net confidence fell to -23 from -17.

Chief executive John Walley said that while year on year numbers were still tracking downwards, better news from overseas, an encouraging cross rate with the Australian dollar, and some repeat orders made for a better feeling in the run up to the year's end.

The October survey covered $616 million in annualised sales, with an export content of 44 per cent.

- NZPA