NEW Zealand manufacturing sales fell heavily in November, and confidence has plunged according to the latest business survey from the New Zealand Manufacturers and Exporters Association.
The association’s latest survey of business conditions showed total sales in October decreased 2.7 percent compared to a year earlier.
While export sales were up 7.9 percent, domestic sales were down 13.1 per cent.
The survey sample covered $460 million in annualised sales, with an export content of 55 per cent.
Association chief executive John Walley said soft sales domestically and lower growth in exports were cancelling out the benefit of a lower dollar for exporters.
“The major concern is that predictions for future investment, profitability, turnover and staff are all trending downwards, which makes an export led recovery tenuous.
“This can largely be attributed to the uncertainty in global markets and the volatility of the exchange rate.”
The current performance index (a combination of profitability and cash flow) is at 88.5, down from the previous month’s 92.5, with anything less than 100 indicating a contraction.
The change index (capacity utilisation, staff levels, orders and inventories) slipped to 96 from 98, and the forecast index (investment, sales, profitability and staff) is at 92.3, down from 95.
Net confidence in October was at -82, up from the -90 result reported in September.
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