Investment in economy ‘weak’

Press, 30 March 1989, Page 33

Investment in economy ‘weak’

By

PATTRICK SMELLIE

in Wellington Signs that investment intentions in the economy remain weak have emerged from import order and building permit figures released by the Statistics Department. While total import orders for January, 1989, excluding mineral fuels, were up an impressive 21.2 per cent on the same month last year, the result has been distorted by heavy orders for transport equipment. These were up 76.6 per cent on the levels of January, 1988. A strong demand for second-hand Japanese cars has caused big in-

creases in the volume and value of cars imported in recent months, making interpretation of the transport orders difficult. But orders for manufacturing raw materials and plant, such as machinery and electrical equipment, and iron, steel, and nonferrous metals told a grimmer tale, recording their lowest values for 16 years.

This suggests that many companies are not replacing plant, as could be expected even in times of recession, and that the downturn in the commercial building sector is affecting orders of materials.