NZ | Economy Thread

[SYDNEY]

Bay of Plenty among top performing regions

The Bay of Plenty was one of the top performing regions in economic development in New Zealand in 2011, according to a report from Business and Economic Research Ltd (BERL). Bay of Plenty Regional Council is ranked second behind Auckland Council, and improved five places from 2010. The rankings are based on indicators of economic activity, such as population, employment, gross domestic product (GDP) and businesses. Bay of Plenty Regional Council Chairman John Cronin said the results were very good news for the Bay of Plenty and emphasised the value of the Bay’s economic strategy, Bay of Connections. “This report recognises that regional development is vital to encourage economic growth at a national level. Understanding what causes economic growth and where this growth is coming from is especially important to maintain and improve our current standard of living,” Mr Cronin said.

It was pleasing to note that all parts of the region featured well up in the national statistics, recognising the strong partnerships between local authorities, he said. The BERL economic indicator ranking report provides Central Government, local government and private businesses with a high-level overview on economic performance, and a comprehensive measure of the economic performance of New Zealand’s 66 local authorities, 14 regions and 20 cities. The Bay of Plenty had the highest employment and GDP growth for 2011, and the fastest growing medium-term GDP. The region also ranked second in medium-term employment growth and on the Relative Openness Index, which measures gearing of the regional economy towards export-focused sectors.

Two of the Bay’s local authorities, Western Bay of Plenty district and Tauranga City, finished in the top 10 in local authority rankings for the first time, and Tauranga is the only city in the top 10 Western Bay ranks sixth, up eight places from 2010, and Tauranga City ranks eighth, up 25 places from 2010. Tauranga is ranked as New Zealand’s top city for economic performance. It had the fastest growing employment and GDP growth of all cities, and the second fastest business unit growth. Over the last five years, Tauranga has had the second fastest employment and GDP growth, and the third fastest population growth. The eastern Bay of Plenty also performed well. In ranking the biggest gains made for local authorities, Ōpōtiki ranked third, Whakatāne fourth, Tauranga City fifth and Rotorua seventh and all placed in the top 10.

The report states changes in technology and the global economy have increased the importance of regions and local activity. The ability for activity to happen anywhere, a mobile workforce and localisation of innovation has put even further value on the importance of place. The Western Bay of Plenty’s performance was supported by improvements in employment and GDP rankings, where it came in seventh and fourth respectively. It also had the ninth fastest growing population in 2011. The BERL report says Western Bay of Plenty is a “solid performer”, with strong medium-term rankings in population, employment and GDP, ranking in the top 10 for each. It ranked second for employment growth over the last five years. The indicator that stopped the district from ranking higher was business unit growth, where it ranked 57th in 2011 and 32nd in the medium term.

[SYDNEY]

Auckland Property Asking Prices Hit a New High

Asking prices for Auckland homes hit a new all time high in April, as the property market across the rest of New Zealand regained some balance, with inventory steadying and new listings maintaining their annual seasonal levels, says Realestate.co.nz. Data released today in the NZ Property Report – a monthly report of housing market activity compiled by Realestate.co.nz – showed that the average asking price for Auckland homes for sale lifted a further 2% from last month, taking it to an all time high of $568,820 – the third high in eight months. Alistair Helm, CEO of Realestate.co.nz, says that Auckland’s price surge was understandable due to the increased pressure that has been placed on that market by strong sales that have not been matched by numbers of new listings.

“Every April, we tend to see a drop in new listings as the traditional New Year surge of activity finally starts to wane. The number of new listings is virtually identical to April last year, but what is different this year is that demand has remained high, with year-on-year sales up more than 20%.” Helm says the Auckland market is still massively undersupplied, and says he would go as far as to describe it as a “chronic shortage.” Meanwhile, asking prices for New Zealand homes overall eased slightly from their steady climb over past few months to finish at $423,832 (seasonally adjusted.) The new listings that did come on the market in April resulted in a slight easing of inventory, which lifted 4% to 33.7 weeks in April. However, Mr Helm says this is still 24% down on a year ago, and well below the long term average of 41 weeks of supply.

“With such a demand for property, we may have expected the market to respond with a few more listings than have appeared, given the signals that the market is clearly favouring sellers,” says Helm. “This indicates that we are not heading for a property bubble, but rather that the market is balancing buyers’ demand with sellers’ expectations well.” However, Helm says that while the next three months are traditionally a quieter time for the property market, with lower levels of listings expected before the annual spring surge, a continuing demand for property may well prompt asking prices to creep up even further. Realestate.co.nz is the country’s most comprehensive property listing website profiling listings of licensed real estate agents with more than 110,000 real estate listings covering residential, commercial, business and farms for sale.

[SYDNEY]

Wage Rates Grow 2.0 Percent

Salary and wage rates, which include overtime, increased 2.0 percent in the year to the March 2012 quarter, Statistics New Zealand said today. This includes a 0.5 percent rise in the March 2012 quarter. Labour cost index (LCI) salary and wage rates for the private sector increased 2.1 percent in the year to the March 2012 quarter. "The latest annual increase for the private sector is the highest in nearly three years," Statistics NZ prices manager Chris Pike said. "Annual wage rate growth for the private sector peaked at 3.7 percent in the year to the September 2008 quarter." Public sector rates increased 1.6 percent in the year to the March 2012 quarter. The increase in the latest year resulted from a 1.6 percent increase in central government and a 2.1 percent increase in local government salary and wage rates.

In the year to the March 2012 quarter, the mean increase for all surveyed salary and ordinary time wage rates that rose was 3.8 percent. This is the highest increase since a 3.9 percent mean increase in the year to the March 2010 quarter. "Fifty-seven percent of surveyed pay rates showed annual rises in the year to the March 2012 quarter – half of these rose by more than 3 percent," Mr Pike said. The Quarterly Employment Survey (QES), also released today, showed average hourly earnings for ordinary time (ie excluding overtime) rose 3.8 percent for the March 2012 year, after rising 2.8 percent for the December 2011 year.

Over the past year fewer paid hours and part-time employees in some industries (particularly education and training) have contributed to the rise in average hourly earnings. “While gross earnings continue to rise, paid hours and part-time employment have fallen for a few industries,” industry and labour statistics manager Diane Ramsay said. “Part-time jobs generally have lower average hourly earnings than full-time. This coupled with the fall in part-time employment has contributed to average hourly earnings rising faster than wage inflation, as measured by the LCI.” For the March 2012 quarter, the seasonally adjusted number of filled jobs was unchanged. The seasonally adjusted number of total weekly paid hours fell 0.5 percent for the same period.

The LCI tracks nearly 6,000 jobs and reflects changes in the rates that employers pay to have the same job done to the same standard. Rises to match the market, retain staff, or reflect the cost of living are shown in the LCI, while rises reflecting individual performance or years of service are filtered out. The QES surveys approximately 18,000 business locations and reflects New Zealand employers' demand for paid labour. From the survey responses, we estimate the levels and changes in employment, gross earnings, and paid hours in the industries we survey. These estimates are then used to calculate average earnings and paid hours statistics

[SYDNEY]

NZ market rebounds to new high

The New Zealand sharemarket has officially regained all the ground it lost during the global financial crisis, rocketing to a new high last seen in May 2008 - but analysts remain cautious. The NZX50 index rose 1.05 per cent, or 37.65 points, to 3.614.97. Within the index, 32 stocks rose and 12 fell. TradeMe led gainers and Heartland New Zealand fell. While the benchmark index came within a hairs breadth of a four year high, First NZ Capital head of institutional equities James Lee was wary of pinning it to underlying economic recovery. "I think that's more a reflection of cashflow in the market. What you've seen here is due to record low interest rates in New Zealand - and globally really - people moving to equity markets, and seeking out some higher return."

The "Telecom effect" had also played a part, he said, creating value through the shearing off of sister company Chorus, while other mainstays like Fletcher Building and Contact were a long way off their former glory. Lee said investors were likely to remain cautious and vigilant, with one eye trained on the European debt situation. "We're seeing people move up the risk curve, but its not widespread in terms of volume, we're not seeing big volumes in the equity market," he said. "It certainly doesn't feel like a bull market." Online auctioneer TradeMe led gainers after a well-received presentation in Sydney. Shares rose 3.8 per cent to a historic high of $3.82, up by a third from last year's initial public offering price of $2.70.

Fisher & Paykel Appliance Holdings, the whiteware manufacturer, rose 2.8 per cent to 56c. Rural services company PGG Wrightson rose 2.7 per cent to 38c. The country's biggest construction firm, Fletcher Building, rose 2.7 per cent to $6.53, continuing a good run after Monday's report that building consents were on the rise. Would-be bank Heartland led decliners, dropping 5 per cent to 56c. Rakon, the manufacturer of crystal timing devices used in electronics, fell 2 per cent to 50c. Fisher & Paykel Healthcare Corp, the maker of breathing masks and respirators, fell 1.4 per cent to $2.18. Outdoor clothing and equipment retailer Kathmandu Holdings fell 1.2 per cent to $1.68.

[Dazzle]

Good on you for ferreting out all the positive stuff
We need more of this attitude

[SYDNEY]

Originally Posted by Dazzle

Good on you for ferreting out all the positive stuff
We need more of this attitude

You are most welcome

[SYDNEY]

Foreign buyers fuel house boom

Wealthy foreign buyers are coming to New Zealand and paying top dollars for homes - fuelling fears they are contributing to skyrocketing property prices around the country. Real estate agent Graham Wall said he had two deals to sell Mission Bay houses to Chinese and he is to travel to Shanghai at the end of the month to drum up further interest. "Why we are getting record prices for Auckland, Hawkes Bay and Queenstown houses is that people outside New Zealand can see its worth," he said. Chinese buyers wanted luxury properties, could afford them and appreciated Auckland's best suburbs with big waterfront views and proximity to the city, he said. "I hold the opposite opinion to house-price critics," he said of people saying runaway prices were ruining the economy and forcing younger people overseas. Russians and Americans were also keen buyers and a $5 million Coromandel deal to a Silicon Valley executive should be settled soon, Mr Wall said.

Ross Hawkins of Southeby's International said wealthy Chinese manufacturing and technology executives were looking to spend millions on Auckland houses. "They're migrants who are coming here, setting up their families for schooling and getting money out of China. Some are going back there but the next generation are staying - 30 per cent of our inquiries are coming from offshore," Mr Hawkins said. Steve Koerber of Barfoot & Thompson yesterday tweeted the $851,000 sale of 96 Portland Rd with a CV of just $580,000 and said the buyer at the multi-bidder auction was Asian. "Asians are active and if they weren't there, prices would not be as high as what they are," Koerber said. Diana Buczkowski, of Barfoot & Thompson, said Chinese buyers were extremely active in her area and willing to pay good prices.

"They have certainly broadened their horizons in the Epsom Grammar zone. They now understand the value of property is in land and they are steering away from townhouses. They often buy through our Chinese agents, generally because there's a network," she said, after selling 123 Wheturangi Rd for $2.3 million when it had a CV of just $1.3 million. Last decade's property bubble was driven partly by the immigration floodgates being opened and the Green Party seeks to limit that via a quota and "encourage settlement outside areas under infrastructure and population capacity stress". Peter West of Barfoots in Epsom said that only people with New Zealand residency could buy a house here. In some cases, a special certificate could be sought to allow a non-resident to buy but he said "those are hard to get".

Some buyers who are residents might however then return to China and leave a family behind them. Economist Rodney Dickens said migration could be pushing up Auckland house prices. "Maybe a small part. I think it is a more generalised thing that is as much if not more about limited supply as it is about demand which isn't hugely strong even in Auckland," said Dickens, of Strategic Risk Analysis. Westpac chief economist Dominick Stephens discounted foreign buyers for driving the latest rises, saying net migration was at its lowest level in 10 years. Instead he said cheap interest rates and severe under-building were responsible for the big Auckland prices, factors which might change soon because building consent data out this week showed a 20 per cent rise.

Earlier this year, Hollywood's James Cameron bought more than 1000ha at Western Lake in South Wairarapa, but only after getting approval. The Titanic and Avatar director plans to live there with his family. Commentator Gareth Morgan this week described rising house prices as a cancer for the economy, writing in the Herald that prices remain at historical highs compared to incomes which had adverse wider effects. "The over-investment in housing that we've sponsored has come at a high price: diversion of capital away from deployment in industry and income and employment and instead into an asset class where the predominant objective of investment has been capital gain," Morgan complained. Bernard Hickey of interest.co.nz said a disparity of wealth between older and younger generations was a serious issue which the country was ignoring at its peril.

"The Baby Boomers will face the ultimate sanction. They will have to watch their grandchildren grow up by Facebook and Skype," he predicted. Wall cited American billionaire Peter Thiel's praise for New Zealand's security of water supply, food production capacity and immigration controls due to geographic isolation. "New Zealand is the only country on earth with a truly golden future. We have all that the world wants so we're in a sweet spot ..."

HEY, BIG BUYER

This year, Auckland agent Graham Wall has negotiated $25m worth of house sales.
Deals to Chinese:

* Ronaki Rd, Mission Bay: under negotiation, $5.8m
* 18 Selwyn Ave, Mission Bay: sold $5m
Source: Graham Wall Real Estate, 2012 deals

Other big deals

* 96 Portland Rd: CV $580,000, sold yesterday to Asian buyer $851,000
* 123 Wheturangi Rd, CV $1.3m, sold yesterday for $2.3m.

[SYDNEY]

Kiwi dollar strong because so is NZ

New Zealand's dollar remains stronger than exporters see as comfortable because the local economy is performing relatively strongly, compared to many trading partners, says Harbour Asset Management in its latest fixed interest commentary. "If the foreign exchange market is a beauty contest between economies, New Zealand has been the best of a reasonably ugly bunch over 2011 and 2012," writes head of fixed income Christian Hawkesby. The Green and Labour parties have been calling on the government to introduce new measures to allow the Reserve Bank to manage the exchange rate and the central bank is threatening to cut the official cash rate below its current historic level of 2.5 percent.

However, Harbour Asset Management says financial markets are over-estimating the likelihood of that outcome, given evidence the Christchurch rebuild is now starting to have an impact on domestic economic activity and a recovery in the Auckland housing market. "If the New Zealand economic recovery falters from a fall in commodity prices and stubbornly high exchange rate, then the RBNZ would be more than justified in cutting the OCR," said Hawkesby. "But that is not the RBNZ's central view of the economy, and it not our view either." Harbour Asset is advising clients to hold short-duration fixed-interest positions "on the view that the market is putting too much probability on the RBNZ cutting interest rates."

The bank's governor, Alan Bollard, warned earlier this month that a rate cut was possible and indicated it would be longer than previously expected before the OCR was increased. Hawkesby points to correlations between recent sustained periods of kiwi dollar strength and times when New Zealand economic data has "surprised on the upside" in comparison with other countries' performance. That includes Australia, where the central bank this week surprised markets with a larger-than-expected 50 basis point cut to 3.75 percent, reflecting domestic economic weakness and fears of a "hard landing" for the Chinese economy. However, Harbour Asset doubts the RBA will deliver on further rate cuts, which could take the Australian benchmark interest rate to levels lower than at the height of the global financial crisis in 2008.

"While we think the RBA may take further steps to ease policy, our view is that the magnitude of cuts priced-in by the market is not likely or warranted. We expect long-term interest rates in Australia to rise over a medium-term horizon." Recent movements in Australian and New Zealand government bond rates had also opened up opportunities for investors seeking value in New Zealand paper, reflected in the heavily over-subscribed $900 million bond tender conducted by the Debt Management Office last week, Hawkesby said.

[DML2]

NZ dollar is strong because Australia is doing well and commodity prices are high

[SYDNEY]

New vehicle sales power ahead in April

Motor Trade Association (MTA) says new vehicle sales continue to be at the forefront of economic recovery with another strong sales month recorded in April. Commenting, MTA spokesperson Ian Stronach, said “The market is really powering ahead at the moment. April’s usually the quietest month of the year, and that’s reflected in the overall volumes, but most importantly it’s still well ahead of last year’s levels. Supply of key models is now pretty much complete, and that, combined with ongoing demand across all segments is resulting in a very healthy market. While unconnected, we are seeing strong new vehicle markets in many parts of the world at present.”

Last month 7,048 new vehicles were sold overall compared to just 5,610 in April 2011, an increase of 1,438 units (26 percent). Year to date, overall sales are up by 3,642 units (13 percent). New passenger car sales were again strong, with sales of 5,430 units, which was 1,172 units (28 percent) ahead compared to April 2011. Year to date, new car sales are ahead by 3,670 units (17 percent). New commercial vehicle sales of 1,618 units was up 266 units (20 percent) compared to April 2011. Year to date, overall new commercial sales are virtually identical to 2011’s levels.

Stronach said “Models like Toyota Hilux have benefited from much improved availability, and the introduction of new models like Mazda’s CX-5 have also given the market something of a shot in the arm. Having said that, April’s good performance is less of a surprise than it might previously have been. We’ve seen strength across the board all year, and based on the market’s performance to date, this could well end up being a very respectable year for new vehicle sales.” Toyota was the top passenger vehicle brand with sales of 785 units (14 percent share) followed by Holden with sales of 550 units (10 percent share) narrowly ahead of Hyundai with 546 units (10 percent share).

Suzuki Swift took out the race for leading passenger car model with sales of 228 units, followed by Toyota Corolla with 218 units and Mazda’s new CX-5 on 179 units. Toyota was the top selling brand amongst commercial vehicles with sales of 420 units (26 percent share) followed by Ford with sales of 331 units (20 percent share) and Nissan who achieved sales of 219 units (14 percent share). Ford Ranger proved to be both the best selling commercial vehicle and best selling vehicle overall with sales of 279 units. This was just ahead of Toyota Hilux which recorded sales of 278 units, followed by Toyota Hiace with sales of 130 units.

With sales of 5,877 units, first time used imported passenger cars were down 279 units (5 percent) compared to April 2011. Despite fears that the market would struggle in the face of reduced availability, it has so far held up well with overall sales for the year to date down by just 2,053 units (8 percent). Going against the trend of improved sales were on road motorcycles. Sales of 411 units was down by 149 units (27 percent) compared to April 2011. After a positive start to 2012, overall sales are down by 310 units (13 percent) for the year to date.

Figures provide by the NZ Transport Agency (NZTA).

[Matt L]

So people are buying new cars but driving them less (vehicle numbers on state highways continue to drop and have done so for the last 7 or so years)

[KaneD]

Originally Posted by Matt L

So people are buying new cars but driving them less (vehicle numbers on state highways continue to drop and have done so for the last 7 or so years)

Where do you get that info from? A check of AADT (Annual Average Daily Traffic) volumes on NZTA's site (up to 2010) show that traffic volumes are still increasing at a steady rate with a small blip when fuel prices spikes a few years ago.

[SYDNEY]

NZ market's growth will outstrip Oz, UK

Fuelled by Government plans to partially privatise state-owned power generator and retailer Mighty River, and by Fonterra's proposed share trading among farmers, New Zealanders can expect significantly enhanced capital markets by the end of this year. We believe this growth, particularly in equity capital markets, will outstrip that of Australia and Britain. Better still, the momentum is expected to continue during the next 24 months, underpinned by the planned sales of minority interests in SOEs Mighty River, Meridian, Genesis and Solid Energy. The Government's mixed ownership programme has stimulated interest in IPOs from a mix of private equity-owned assets and privately-owned mid-size businesses.

Much of this interest has been sparked by the successful floats of Trade Me and Summerset, and the demerger of Telecom and creation of Chorus at the end of last year. In fact, the value of New Zealand IPOs for the last quarter of 2011, raising US$388 million, exceeded that of Europe, including Britain, where US$217 million was raised in the same period. We are optimistic about a second wave of activity in the New Zealand IPO market from the third quarter this year. The Summerset float has demonstrated a window for private equity selldowns through to the public capital markets. In Christchurch, in particular, commercial property owners, flush with post-quake insurance cheques and uncertain about the city's rebuild plans, are itching for yield.

Fonterra may offer another opportunity for private investors. The Dairy Industry Restructuring Amendment Bill, enabling share trading among farmers, has passed its first reading in the House, and Fonterra's shareholders are due to vote on the final proposal on June 25. A previous vote, in 2010, was 89.85 per cent in favour. Of particular interest to non-farmer investors will be the proposed Fonterra Shareholders' Fund where NZX would manage a process of trading investment units, allowing farmers to sell down their equity in the co-operative. These units would attract dividends but no voting rights. In addition to opportunities in public equity markets, private equity activity has soared to pre-GFC levels, with total investment increasing by 88 per cent last year to $554 million.

But the global IPO market is a different story. Ernst & Young's Capital Confidence Barometer, released at the end of last month, shows corporate confidence in capital markets has risen globally in the past six months but has yet to translate into significant investment activity. The report was based on a survey of more than 1500 executives worldwide, including 146 from Australasia. The most cautious respondents - those focused mainly on capital preservation and survival - have dropped to 13 per cent from the 30 per cent recorded in last October's survey, and those at the other end of the scale - companies focused on capital raising - have risen from 15 per cent to 25 per cent. But most of this activity has involved refinancing rather than IPOs. Of those respondents focused on capital raising, 60 per cent say cash is likely to be the source of deal funding during the next 12 months.

But debt and equity funding are back on the table, with 30 per cent of respondents saying they're considering debt funding (up from 11 per cent in October 2011) while another 17 per cent say they plan to use the equity markets. Behind much of this sentiment is uncertainty about the resolution of the eurozone sovereign debt crisis - a risk prospective investors must still factor into their decision-making. Europe's debt crisis deeply impacted global IPO activity in 2011. In terms of capital raised, the 2011 figure (US$170 billion) was 40 per cent lower than 2010 (US$285 billion). The first quarter of 2012 shows a similar trend. Ernst & Young's Global IPO Update, released at the end of March, revealed a sharp fall in IPO activity in the first three months of this year with 47 per cent fewer deals and 69 per cent less capital raised than in the equivalent period in 2011. Compared with the last quarter of 2011, there were 38 per cent fewer deals and 51 per cent less capital raised in the first quarter of 2012.

This year Asia-Pacific issuers have been global market leaders, both in the amount of capital raised (43.4 per cent ) and the number of IPOs (59.2 per cent). The Shenzhen Stock Exchange was the most active, with 37 deals (23.6 per cent of the total number), followed by the New York Stock Exchange (20 deals, comprising 12.7 per cent of the total) and Hong Kong (13 deals, comprising 8.3 per cent of the total). By the amount of capital raised, New York was the star performer, raising US$3.9 billion (27.7 per cent of global proceeds) by hosting nine of the top 20 IPOs. Shenzhen was runner-up, with US$3.1 billion (22 per cent), followed by the Shanghai Stock Exchange which raised US$1.5 billion (10.2 per cent). Globally, the markets will continue to be affected by eurozone uncertainty in 2012.

[SYDNEY]

Growth, Upgrades, Skills Shortage Drive Technology Salaries

New Zealand technology staff can look forward to an average 3.8% pay rise in 2012 according to the 2012 Robert Half Technology salary guide, released today. Data architects and business analysts are set to receive the biggest year-on-year salary gains, with average pay rises of 7.5% and 7.3% respectively. Hiring new staff to facilitate business growth and manage systems upgrades will be a key driver for technology recruitment over the coming months. 80% of new hires will be recruited to fulfil these requirements. The industries showing the highest levels of IT recruitment in New Zealand are financial services, particularly banking and insurance, as well as the utilities industries. Signs are positive for growth in other areas too: a recent survey of 100 Kiwi CIOs and CTOs conducted by Robert Half found 66% shared confidence in their company’s intention to invest in new technology projects in 2012.

There are sector-based pockets where particular IT skills are in demand and candidate availability is low. Demand in those areas in particular will fuel pay rises and this is where employees with the right training and experience can expect to receive higher than average salary growth. IT professionals who possess .NET skills with a focus on multi-tiered architecture, as well as those with Microsoft Business Intelligence proficiency, are particularly well placed to benefit in the current market. Relevant skill sets can see IT workers earn between 6 and 15% more than their peers. Robert Half general manager, Megan Alexander, says in order to meet their IT objectives, businesses will first need to invest in having the right people on the ground. “The intent to invest in and upgrade technology will drive demand for staff. Those looking to stay marketable must ensure they develop their skill sets in line with future growth and up skill in the areas that are most in demand. “But IT employees can no longer rely on their technical abilities alone,” she warns. “They must also be strong communicators who are able to share information effectively with their peers.

“Those candidates with a combination of technical experience and ‘soft skills’ are the most highly sought after in the current market.” Alexander also advises hiring managers to be realistic when setting salary budgets in a skills short market. “If New Zealand businesses are serious about keeping and attracting technology staff, they’ll need to look carefully at remuneration. Whist salaries are not the only consideration for attracting and retaining staff, bosses must ensure they are paying competitively or they’ll risk losing key players to other opportunities.” The Robert Half research found that while the market is stronger, a shortage of quality candidates in New Zealand has seen many employers look overseas to fill gaps. 54% of New Zealand CIOs and CTOs surveyed said they’re finding it challenging to hire IT professionals with the skill sets they require. 55% also shared their concern about losing top performers to other job opportunities in 2012.

[SYDNEY]

New Zealand Ranked Fourth Safest Economy in Asia-Pacific Region

image hosted on flickr

08 APR 12 21°C by Urban+Explorer, on Flickr

New Zealand is considered one of the safest countries in which to invest in the Asia-Pacific regions, due to its low degree of economic uncertainty and stable risk profile. Dun & Bradstreet’s Global Risk Indicator (GRI)1 ranks New Zealand at number four in the Asia-Pacific region and among the top 20 safest countries globally. The GRI provides a comparative, cross-border assessment of the political, commercial, economic and external risk of doing business in 131 countries.

1.
Australia DB1d (lowest risk)
2.
Hong Kong DB2a (low risk)
3.
Singapore DB2a (low risk)
4.
New Zealand DB2c (low risk)
5.
Japan DB2d (low risk)
6.
South Korea DB2d (low risk)
7.
Taiwan DB2d (low risk)
8.
Malaysia DB3b (slight risk)
9.
China DB3d (slight risk)
10.
India DB3d (slight risk)
11.
Indonesia DB4b (moderate risk)
12.
Philippines DB4b (moderate risk)
13.
Thailand DB4d (moderate risk)
14.
Vietnam DB5b (high risk)
15.
Bangladesh DB5c (high risk)

Close neighbor and key trading partner, Australia, has the lowest risk rating in the Asia-Pacific region and globally. Australia’s risk rating has not been downgraded since 2008, although the country’s overall risk profile is classified as deteriorating. Hong Kong and Singapore are ranked second and third respectively in the Asia-Pacific region; although they are both also on a deteriorating trend. Hong Kong’s banking sector is suffering from a spate of alleged malpractices and political scandals, while Singapore is experiencing inflationary pressures and slowing economic growth.

However, New Zealand, with its number four ranking, is better placed than two of its major trading partners, Japan and China. Both countries are ranked as DB2d and DB3d respectively; brought about by Japan’s widened trade deficit and high public debt, and China’s sluggish economic growth and deflating property market. According to John Scott, General Manager, Dun & Bradstreet New Zealand, the country’s GRI ranking supports recent data coming out of New Zealand, which demonstrates that conditions are improving, but the economic recovery occurring domestically is fragile.

[SYDNEY]

Chorus to invest $1b over next 2 years

Chorus announced today that it plans to spend nearly a billion dollars over the next two years for the provision of the Government's ultra fast and rural broadband projects. The telephone network company's guidance today put capital expenditure for the 2012 financial year at $335 million to $355m, and at $560m to $610m in the following year. That puts the total upper spending figure at $965m. Of that, the contribution from taxpayers through the Government's Crown Fibre and Rural Broadband schemes will be about $90m this year and $200m next. "'These are massive programmes of investment in New Zealand's network capability,'' said chief financial officer Andrew Carroll. ''We expect fibre related capex to account for about 80 per cent of gross capex spend this year and next.''

Last month the company made its first draw-down on the Government's ultra-fast broadband programme funding, tapping $3.9m from Crown Fibre Holdings through the issue of 1.9 million in equity securities and 1.9 million in debt securities at $1 apiece, as well as 83,000 warrants. "Our focus now shifts to our longer term objectives," said chief executive Mark Ratcliffe. "We are working closely with our customers to help them transition to a fibre world, while also building our fibre network and operating our copper network more efficiently." Chorus shares rose 1.3 per cent yesterday to $3.20, about on par with when the company listed on the NZX in November last year.

[SYDNEY]

NZ regions: Who's struggling, who's winning?

Most regions around the country need an energy injection, though a handful are in a "fair to middling" state, according to the latest ASB regional economic scoreboard. Nationally, employment growth slowed early this year, aside from the encouraging recovery in jobs in the Canterbury region, the bank report says. Wages were picking up, but from "subdued" levels, reflecting the gradual lift in employment demand. There was a lift in housing activity, but with signs of a shortage of supply in Auckland and Canterbury. Retail sales nationally fell after a surprising drop in supermarket food sales in the March quarter, but there was an underlying trend of gradual recovery in household demand, the report says.

There were also signs of a recovery in construction work, though from extremely weak levels. Improved housing demand was encouraging home building and rebuilding work was under way in Christchurch, the report says. Hawke's Bay is facing the toughest times of all the regions in the March quarter, rating just one star in the scoreboard which means- "take pity", the report says. The region had slipped the bottom of the regional rankings, likely reflecting the effect of the high New Zealand dollar on the wine export sector in the region. The Hawke's Bay household sector was relatively weak, too, with house prices falling in the past year, while prices improved nationally. Building work was also lagging behind the rest of the country, however there was a recovery in employment in the wider region.

Meanwhile, Wellington slipped slightly to the bottom half of the rankings, rating two stars so "needs an energy injection". The boost to activity from the Rugby World Cup was largely confined to a robust increase in retail sales in the past year. But other activity remained relatively weak, with jobs, guest nights and commercial construction down in the past year. Wellington also had relatively weak housing market activity, with flat house price. "These developments likely reflect the public sector restraint that has taken place over the past year," the ASB report says. However, consumer confidence in Wellington improved in the March quarter and is now one of the highest in the country. Other regions in a "fair to middling" state include Auckland, Tasman, Nelson, West Coast, Canterbury and Otago.

[KLK]

Originally Posted by KaneD

Where do you get that info from? A check of AADT (Annual Average Daily Traffic) volumes on NZTA's site (up to 2010) show that traffic volumes are still increasing at a steady rate with a small blip when fuel prices spikes a few years ago.

Static since 2004 apparently:

http://transportblog.co.nz/2012/03/2...and-loving-it/

[SYDNEY]

Economy expected to gather pace

The OECD expects New Zealand's economic growth to gather pace over the next two years, supported by low interest rates, the rebuilding of Christchurch, and comparatively strong growth in its two most important trading partners, Australia and China. The OECD (Organisation for Economic Co-operation and Development) said growth in the 2011 December quarter was 1.3 per cent up on the same quarter in 2010. This is expected to rise to 1.9 per cent this year and 2.8 per cent next year. The expansion is being held back by a strong exchange rate, falling export commodity prices, pressure on households to reduce debt, and the withdrawal of fiscal stimulus, it said. Its forecasts have government consumption shrinking both this year and next by 0.7 per cent, while gross fixed capital formation, which would include the rebuild, climbs by 6.2 per cent this year and 11.2 per cent next.

The OECD said the Government needs to stick to its fiscal consolidation plans, given the vulnerabilities of rapidly rising public debt and high external debt. The forecasts, part of the OECD's latest twice-yearly economic outlook, project a "muted and uneven" recovery across OECD economies, reflecting the lingering effects of past turmoil, particularly strong fiscal headwinds in the euro area, and a gradual cyclical recovery in most emerging economies. It sees the eurozone crisis as posing the most important downside risk to the global economy. "Other serious downside risks include that no action will be agreed to counter pre-programmed fiscal tightening in the United States in 2103, and that a relatively moderate further deterioration in supply conditions in the oil market could trigger a significant upward spike in oil prices in the near term."

[SYDNEY]

Kiwi work-life balance tops global average

New Zealanders’ work-life balance is higher than the global average even as employees work harder and are more productive than two years ago, says flexible workplace provider Regus. New Zealand employee's work-life balance was 126 points topping the global average of 124 points, according to the Regus work-balance index. The index demonstrated a connection between good work-life balance and employee productivity with 48 percent of kiwi employees working harder than two years ago. Workers said they'd taken on additional duties since the global financial crisis. "The results indicate that New Zealanders are working harder than two years ago and are spending more time at work," William Willems, Regus Regional Vice President South East Asia, Australia and New Zealand said in a statement. "Despite this increase in time and energy, New Zealanders still enjoy a better work-life balance which is higher than the global average.” The survey, which polled over 16,000 business professionals worldwide, ranked New Zealanders productivity at 79 percent. That's higher than Australia workers on 77 percent, the US on 77 percent and China on 73 percent. Kiwis were the happiest workers on 74 percent. That's higher than workers across the Tasman on 66 percent, in the US on 64 percent and UK on 60 percent. “A good work-life balance is essential to maintain a healthy and happy life and is important to ensure the health of the New Zealand workforce to support business productivity," Willems said.