When will this damn economic/manufacturing crisis end?
New Zealand manufacturing activity expanded for an 18th straight month in February with signs a buoyant economy is creating jobs.
The BNZ-BusinessNZ seasonally adjusted performance of manufacturing index edged lower to 56.2 in February from an upwardly revised 56.3 in January, and 55.4 in February last year. A reading above 50 indicates expansion in the sector. Â Read more »
In the December 2013 quarter, seasonally adjusted dairy export values rose 27 percent, Statistics New Zealand said today. Dairy volumes, after adjusting for seasonal effects, rose 23 percent while actual prices fell 1.1 percent.
Total export volumes rose 9.7 percent in the December 2013 quarterÂ while total export prices fell 0.5 percent. Both movements were strongly influenced by dairy, which accounted for 39 percent of the value of goods exported in the December quarter â€“ twice as much as meat and forestry combined.Â Read more »
The good news just keeps on rolling in as the economy hums.
Anecdotal evidence form the likes of trucking firms is starting to be confirmed in hard statistics.
No amount of trash talking New Zealand from the opposition parties can stop an economy in recovery.
New Zealand business confidence climbed to a 20-year high in the fourth quarter, lifting expectations for profits, hiring and investments, and raising the prospects for inflation to start to accelerate.Â Read more »
The former chief economist and spokesman of Chinaâ€™s National Bureau of Statistics estimated that the mainlandâ€™s economy grew 7.7 per cent in 2013, while also making a scathing criticism of Chinaâ€™s banking industry, likening it to an automated system that even a dog could successfully run.
â€śBanking in China has become like a highway toll system,â€ť Yao Jingyuan said at a Saturday summit on Chinaâ€™s economy held at Nanjing University. â€śBanks charge every time money goes through them.
“With this kind of operational model, banks will continue making money even if all the bank presidents go home to sleep and you replaced them by putting a small dog in their seats.â€ť
Yao added that there were no longer any real bankers in China, and that most bankers had become â€śfreeloadersâ€ť who latched onto the wide profit margin they could enjoy by taking advantage of interest differences between deposits and loans. Â Â Read more »
At grass root level, by the guy on the street â€“ actually Civil infrastructure engineers and construction contractor engineers to be more precise (the people who design, then build it all) â€“ in both East & West Coast cities – tell me that things in Aussie could get very ugly indeed come the New Year.
During a conversation about media slanting narratives to fit the agenda they are pushing, talk turned to â€śthe news in Aussieâ€ť vâ€™s â€śnews in NZâ€ť and if our MSM can shelter and protect and even â€śenableâ€ť the likes of our corrupt Mayor with his nepotism, what are the Aussie MSM getting up to with how things are in the economy â€“ now that thereâ€™s been a change in government away from the ALP?
The Civil Engineer in Perth writes:
The resources slow down is far worse here than people seem to realise. I think the media have been caught up with elections and the hot topic of illegal immigrants. The economy seems to have passed without much comment. The reality is exactly as your buddy in Brisbane describes. Significant lay offs, salary freezes, salary downgrades and virtually nothing happening. Â Read more »
The BNZ-BusinessNZ seasonally adjusted PMI for July stood at 59.5, which Â was 4.3 points higher than June and a return to strong levels of expansion seen in May. Compared with previous July results, the 2013 value was the highest since the survey began in 2002, and the third highest monthly result on record. Overall, the first seven months of 2013 has averaged a healthy 56.3.Â Read more »
I couldnâ€™t get a true estimate of what the Governmentâ€™s net assets were â€“ the SOEs are valued at $29 Billion (Down $3 billion due to rail in the last 12 months) and there is $50 billion in assets held by Crown Entities (Think this will be mostly Hospitals, Schools and State Houses) and $29 Billion owned by Core Crown. While some of this would be prime commercial property in various cities, most would be impossible to sell like Highways, National Parks and historical locations, Parliament and Waitangi. While nowhere as dire as the US, weâ€™re probably close to debt being 100% of government assets.
Either way, itâ€™s not looking bright for the next few years until we are back in surplus and from there only disciplined governments will keep us afloat.
I’ve been catching up on the weekend political shows.
Shearer has repeatedÂ Cunliffe’s out of left field policyÂ to give Ministers the right of veto over private business transactions, like the proposed takeover of Fisher & Paykel by Haier.
This is absolutely startling policy.
What sort of signal would this send to the rest of the world?
This is economic policy by opinion poll.
God knows what sort of impact this would have on our Free Trade Agreements, let alone the impact on householders who’ve invested money in Kiwi companies on the sharemarket. Â The premium on their investment could be destroyed with the stroke of a Ministerial pen.
Of course Labour’s also promised to subsidise unprofitable jobs like those at KiwiRail and Solid Energy, while the Greens want to keep the jobs at Solid Energy but leave the coal in the ground.
These policies alone demonstrate Labour and their Green buddies are not fit to govern.
Westpac have released their latest quarterly update on regional economic confidence and it shows that Canterbury is by far the most optimistic region in the country. Â I guess the unions will say they haven’t been talking to them and sucking up their crap lines.
Canterbury has seen another surge in economic confidence and is now the one unambiguously optimistic region in the country, with a net 36% of households expecting mainly good economic times over the year ahead (57% expect good times, 21% bad). While parts of the regional economy are still struggling, the repair and rebuild effort is now clearly underway, demand for repaired and non-damaged homes has pushed house prices beyond their 2007 peaks, and the unveiling of the new central city plan may have lifted optimism as well.
While the latest education announcement was a big fuck up (is that now two strikes for Hekia?) it seems that most people in Canterbury (perhaps it is the silent majority) actually understand that things are picking up and work is getting done.