4 Dec 2011

Fewer pessimists in latest business confidence survey

6:45 am on 4 December 2011

Exporters and manufacturers are feeling less gloomy about their prospects but are weighed down by a high exchange rate and the financial crisis in Europe.

The New Zealand Manufacturers and Exporters Association's monthly survey of sales and sentiment shows total sales in October fell by 6.5% on the same month last year.

A slight rise in export sales was offset by a 10% fall in domestic sales.

The association's chief executive John Walley says net confidence remains negative, although there are fewer pessimists than the previous month.

"We are hanging in there, things are going okay, we are still not in contraction but we are not feeling very happy about the world," he says.

Mr Walley says shrinking staff numbers are a major concern as exporters don't expect sales to pick up in the short term.