Survey paints bleak picture for manufacturers

Businesses surveyed by the New Zealand Manufacturers and Exporters Association (NZMEA) employed 17 percent fewer staff in April than a year ago.

The survey also revealed manufacturing sales have dropped markedly across the board, and export sales have deteriorated significantly, said NZMEA chief executive John Walley.

"We have not yet seen the bottom," Mr Walley said. There were no "green shoots" in the survey.

The survey showed total sales in April 2009 decreased 59 percent on April 2008 and export sales decreased by 53 percent. Domestic sales fell 62 percent.

Net confidence slipped to minus 50, which is a deterioration from the minus 42 result reported last month.

The current performance index is at 91, up from the previous month's 89.5, the change index is at 94 from 91 last month, and the forecast index is at 91.3, down on 96.8.

Anything less than 100 indicates a contraction.

Firms selling to the Government, or state funded buyers and some niche manufacturers were still finding markets, but overall the situation was bleak.

"Last week's steady as she goes Budget did not offer much hope or support for exporters. Our distorted tax framework and ill-targeted monetary policy system remain resolutely sacrosanct," Mr Walley said.

The NZMEA survey sample this month covered $423 million in annualised sales, with an export content of 42 percent.