KEY POINTS:
A survey of Canterbury manufacturers show sales increasing nearly 20 per cent in February, but that figure was boosted by some unusually high results.
Excluding those unusual revenue figures, and taking account of significant raw material price increases, the aggregate change would have been slightly negative, Canterbury Manufacturers' Association (CMA) chief executive John Walley said.
He pointed out that one large manufacturer in the marine sector had reported "things are moving to a new level".
While that was excellent news, it was hard to get excited about this Export Year in the face of what was happening in the broader economy, Mr Walley said.
It had been said that exporters would get used to a high value NZ dollar, but that would be a bit like getting used to a chronic terminal disease.
"Market entry with a low price has been a clear Chinese strategy, and it now seems that Chinese companies are looking to lift prices as their competition fails," he said.
He did acknowledge the high level of the NZ dollar against the greenback was partly offset by a more benign rate against the Australian currency than at the same time last year.
That had some importance for exporters, for many of whom Australia was the main offshore market, Mr Walley said.
The CMA survey reported $354 million in annualised sales for February, with export sales up almost 60 per cent and domestic sales down just slightly.
Net confidence was up to 0, from -17 reported the month before, but the current performance index which measured a combination of profitability and cashflow was at 93, down from the previous month's 98.
Staff numbers were up nearly 4 per cent.
- NZPA
