Manufacturers lose confidence

Press, 7 May 1980, Page 20

Manufacturers lose confidence

PA Wellington A recent survey by the Manufacturers’ Federation indicates a sharp drop in domestic sales, forward orders, and confidence in the economy. Reported in the Federation’s bi-monthly magazine, “Manufacturer,” a survey for 'he two months ending in January, 1980, indicated domestic sales were 0.8 per cent down for the companies surveyed. Export sales were reported to be 8.81 per cent higher than budget. Forward orders were 0.61 per cent down on budget, although export forward orders were 3 47 per cent higher. The survey also indicated a strain in liquidity, and 36 per cent of the survey’s respondents recorded liquidity strains compared with only 19

per cent in November last year. Lack of confidence in the economy was indicated by only 23 per cent of the respondents showing interest in expansionary investments, compared with 38 per cent in November. However, the survey did indicate that employment ■ levels were up for fulltime staff by 1.6 per cent and 0.7 per cent for parttime staff compared with the last survey. Commenting on the results .of the' survey, the manufacturers’ federation’s assistant economist (Mrs G. Chesterman) said the confidence of manufacturers had continued to decline over the last six months. “Poor liquidity and high interest rates will force manufacturers to reduce stock volumes and this will mean a reduction in production,” she said.