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.
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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?
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siemens Posted:
Yes true! The only thing that will never die in this world is the nature and its science behind it. Great post.
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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.
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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.
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Keep the interest rate cuts coming

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Today’s inflation release by Statistics New Zealand showed a Consumer Price Index (CPI) increase of 0.3% annually and 0.4% on last quarter; inflation continues to come in at well below the Reserve Bank of New Zealand’s (RBNZ) target band of 1% to 3% over the medium term – more cuts are justified and helpful to counteract headwinds in our economy, says the New Zealand Manufacturers and Exporters Association.

NZMEA Chief Executive Dieter Adam says, “Inflation remains low and the June CPI would have been flat on last quarter if not for petrol prices. This is further reason for the RBNZ to keep cutting interest rates over this year, to spur growth and help the New Zealand dollar continue its downward trend, improving the competitiveness of our manufacturers and exporters. The continued fall of the currency will also help our dairy sector and the related manufacturers, who are facing hard times with the reduction in dairy prices.

“However, the continued fall in dairy prices reminds us of the need to focus on diversifying our economy and further strengthening our high value manufacturing and exporting businesses, which have the potential to provide valuable well paid jobs and growth. It is the right time to invest in the growth and innovation of our manufacturing and exporting businesses to help the shift to a sustainable and high value economy that complements our existing agricultural base.

“While interest rate cuts are needed, our housing market, particularly in Auckland needs to be carefully watched; more action may well be required to bring prices back in line with incomes and limit any financial stability threat that could damage our economy and manufacturing and exporting businesses.” says Dieter Adam. 

tags: cpi, inflation, rbnz, exports, currency, nzd, dairy, manufacturing, diversifying


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