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NZ manufacturing sales up

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New Zealand’s total manufacturing sales increased by 28.38 per cent in June, compared to the same period last year.

According to the latest New Zealand Manufacturers and Exporters Association (NZMEA) survey of business conditions, year-on-year export sales also increased by 30.45 per cent, while domestic sales went up by 26.38 per cent.

The NZMEA survey sample this month covered NZ$552m in annualised sales, with an export content of 50 per cent.

"June reported another very good month for manufacturers and exporters, with turnover improving both domestically and in exports; however there is some concern over the future in the responses," says NZMEA Chief Executive John Walley.

"Staff numbers improved slightly above the trend of recent months, while confidence fell along with two out of three indexes (forecast and change)."

Mr Walley added that comments recorded in the survey indicate there is concern about the high value of the New Zealand dollar. NZ$1 currently equals US$0.85 (A$0.91).

"In the latest OCR statement the Reserve Bank of New Zealand (RBNZ) made a real effort to talk down our currency, which was not responding to the significant fall in dairy prices since January 2014 - this had some success with the currency pegging back nearly 4% after approaching a post float high in early July," he said.

"The fact the currency has remained above January levels despite these falls must bring into question the idea of auto stabilisation of returns around commodity prices and exchange rates. The RBNZ need to do more than just talk to bring the currency down to justifiable and sustainable levels."

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