Posted by Blogger Name. Category:
LabourGreenNZFirstMana
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Manufactured crisis
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Manufacturing
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Statistics New Zealand
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Terms of trade
Remember the "manufactured" manufacturing crisis? Labour, the Greens, Winston First and Mana spend tens of thousands of taxpayer dollars conducting a sham "parliamentary inquiry". The "inquiry" reached a predetermined conclusion.
There's just one slight problem; manufacturing wasn't actually in crisis at all. Manufacturing has now been in positive territory for almost 18 consecutive months.
And Statistics NZ's latest figures paint an optimistic picture:
Economic Survey of Manufacturing: March 2014 quarter – Media Release
The total manufacturing sales volume rose for the third consecutive quarter, Statistics New Zealand said today.
After adjusting for seasonal effects, the volume of total manufacturing sales rose 0.5 percent in the March 2014 quarter, led by rises in chemical and petroleum related industries.
"This quarter's rise occurred despite a relatively flat quarter for meat and dairy product manufacturing," business indicators manager Neil Kelly said.
Meat and dairy product manufacturing was up just 0.1 percent following a large rise in the December 2013 quarter.
"Rises in the chemical and petroleum industries more than offset falls in a number of the other industries," Mr Kelly said.
The sales volume for total manufacturing, excluding meat and dairy, was up 0.7 percent in the March 2014 quarter. While overall sales increased, sales for seven of the 12 manufacturing industries in this group fell.
The main industry movements were:The trend for the total manufacturing sales volume, which gives a longer-term picture of movements, is rising – following a low point in the June 2013 quarter.
- chemical, polymer, and rubber product manufacturing, up 8.5 percent
- petroleum and coal product manufacturing, up 5.8 percent.
In current prices, the total manufacturing sales value rose 0.6 percent ($155 million).
The significant feature of today's figures is that even though meat and dairy exports were pretty much static, volumes for the March quarter continue to rise. An increase in sales volumes for the quarter of $155 million is very welcome indeed. At the same time, our terms of trade are the most favourable they have been in two generations.
Instead of talking down the manufacturing sector and seeing crises where none exist, the opposition parties should be welcoming today's announcement with an admission that they got it wrong. Manufacturing did dip in the early stages of the Global Financial Crisis, but those manufacturers and exporters who got smart and changed the way the did business are now flourishing as New Zealand leads the world towards economic recovery.
That is something to be celebrated, not bad-mouthed.
