A survey of manufacturing activity showed a 20% rise in sales in August from a year earlier, with much of the growth from manufacturers exporting to Australia and Asia.The New Zealand Manufacturers and Exporters Association survey showed export sales amon
A survey of manufacturing activity showed a 20% rise in sales in August from a year earlier, with much of the growth from manufacturers exporting to Australia and Asia.
The New Zealand Manufacturers and Exporters Association survey showed export sales among the companies surveyed up 37% from August 2009, while domestic sales rose 13%.
Association chief executive John Walley said that while the improvement was not across the board, the last couple of survey results had been "very encouraging".
He cautioned that the August result may have been overstated because several manufacturers who had particularly weak results a year earlier had a strong August this year.
"Growth is largely from manufacturers exporting to Australia and Asia where growth has continued despite the global recession. Those exporting to the United States and Europe are having a hard time with volume and margin," Mr Walley said.
The current performance index (a combination of profitability and cash flow) is at 107.5, up from 103.5 in July, the change index (capacity utilisation, staff levels, orders and inventories) went down to 100 from 101 in the last survey, and the forecast index (investment, sales, profitability and staff) is at 104.75, down on July's result of 105.5. Anything less than 100 indicates a contraction.
Constraints reported were 80% markets, 10% capital and 10% skilled staff. Staff numbers were up 7% from a year earlier.
