Comments

David Thompson Posted:
So very, very true. It beggars belief that we consider ourselves to be a developed nation when so much of our economy is based on selling milk powder or logs. BTW, I own a Plinius amplifier (my second) that drives a set of Theophany speakers.
(view article + comment)
David Thompson Posted:
A robust but sobering report. It concerns me that confidence is rising, yet sales and exports are down and "manufacturers and exporters are still lagging behind other sectors". Surely we should wait until we're earning more money before we start spending more?
(view article + comment)
siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
(view article + comment)
Kieran Ormandy Posted:
Thanks for the question Steven, Germany has seen increases in manufacturing employment since 2009, and Switzerland has had stable manufacturing employment between 2006 – 2011, even in the face of ongoing Euro-zone issues. Korea has seen increases in manufacturing employment since 2008 and Israel experienced large increases since 1998, while being stable over the last 4 years. Singapore has had increases in manufacturing employment over the last two years. These countries all value their manufacturing sectors and work to protect them, this is reflected in the above numbers and their performance through the GFC. Note data around the above examples was sourced from OECD labour market stats.
(view article + comment)
John Walley Posted:
Point one: you should have no doubt what our Association says publically represent the views of our members. Point two: we don’t knee jerk responses, if you trace back our comments around NZPower you will see them link all the way back to our research in 2004 and 2005. All that material is fully linked from our comments above. Point three: you will note our comments on major users, sadly the same advantage does not accrue to smaller industrial users. The perverse incentives of the LRMC approach in all this are well known. Point four: the NZMEA is not like any other Association in New Zealand we admit only manufacturers and exporters into membership, and our public expressions are the views of that restricted membership.
(view article + comment)

Recent News

House price increases slow as new lending rules begin to take effect - QV - Stuff Business, 1 Nov 2016 New Zealand's hot housing market is showing signs of cooling down.

Global debt hits $152 trillion - New Zealand Herald, 6 Oct 2016 Global debt has hit a record high of US$152 trillion (NZD$217 trillion), weighing down economic growth and adding to risks that recovery could turn into stagnation or even recession, the International Monetary Fund has warned.In...

Business owners confident in economy - survey - 3 News Business, 4 Oct 2016 Kiwi businesses were more optimistic about the state of the economy and their own activity in the September quarter, even as their profits were squeezed. ...

Households losing wealth as debt keeps going up - Stuff Business, 4 Oct 2016 New Zealanders have become poorer over the past year.

Signs of challenges for exporters - NZMEA survey - Voxy, 6 Sep 2016 The latest New Zealand Manufacturers and Exporters Association (NZMEA) Survey of Business Conditions completed during August 2016, shows total sales in July 2016 decreased 15.27% (year on year export sales decreased by 20.48% with domestic sales decreasing by 6.03%) on July 2015.

.
Ad enquiry


16/9/10

OCR damage continues


Print-friendly 0 comment(s) Posted in: In the media

The Reserve Bank seems to have recognised the weaknesses in our trading partners that should have prevented any Official Cash Rate (OCR) hikes until this point, but has not found the resolve to reverse earlier hikes. The two hikes have and will continue to reduce growth in the export economy say the New Zealand Manufacturers and Exporters Association (NZMEA).

NZMEA Chief Executive John Walley says, “There has been talk of further quantitative easing in the United States, and the Bank of Japan has just intervened in currency markets to bring down the value of the Yen. We will see our growth prospects continue to suffer while these comparisons are ignored.”

“Debt has become the dominant force in the economy with businesses and households choosing to retire debt rather than invest or consume. This means lower inflationary pressure over the medium term.”

“This begs the question: why has monetary policy stimulus been removed? The tradeable sector has never been an inflation driver, and with the domestic pressure gone there is no reason to inflict damage on the tradeable sector. As we have said previously, pride should not get in the way of a prudent decision.”

“The message is simple; we will not see new export investment leading the recovery with the dollar at 72US cents.”
 



tags: ocr, reserve bank, currency intervention, tradeable sector

comments

0 Comment(s)



No comments have been posted yet

Name:
Email:
Website URL:
Comment:
Remember Me:
Email Replies:
Please play the ball not the man.