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Manukau's economic growth up By PJ TAYLOR Monday, 31 July 2006 • Howick and Pakuranga Times FAST rising fuel costs are starting to bite in Manukau, as consumer confidence dips and the economy slows. But it’s not all doom and gloom, as the Manukau economy is estimated to have grown by 5.7 per cent for the year to March. That’s well ahead of Manukau City Council’s goal of 5 per cent average growth and it says the “very encouraging performance” is above the 5.1 per cent economic activity increase for the Auckland region. The national economy grew 2.2 per cent in the same period. Manukau City councillors are set to discuss the latest economic analysis at its economic development committee meeting on Wednesday. “This strong annual figure masks a slowing in economic activity in Manukau over recent months. “The slowdown is reflected in lower growth in domestic demand and business investment and in falling employment in Manukau’s manufacturing sector,” says a report to the committee. Analysis in the report was commissioned by the council and supplied by Infometrics and the NZ Institute of Economic Research (NZIER) quarterly survey of business opinion. It says consumer confidence is at its lowest point since September 2000. “With high petrol prices and interest rates, consumer spending may well slow further despite the extension of the Working for Families tax relief package and other new government spending in the Budget.” Automobile Association figures from the end of June say per litre charges for 91-octane petrol and diesel have gone up 31c and 28c respectively since the beginning of the year. However, optimism is flowing through manufacturers, following the gradual drop in the value of the dollar. “Confidence among manufacturers has lifted sharply since February and production in some manufacturing industries has also risen,” says the report. “Increased manufacturing activity is expected not only to lift employment in manufacturing but also underpin economic activity throughout the city as the year progresses.” The ranks of Manukau’s employed grew 5.6 per cent for the year to March, partially explaining the 2.2 per cent drop in registered jobseekers, from 12,092 to 11,826. In the property and development sectors, Manukau’s growth in average house prices has levelled off at 11 per cent since December as regional and national ones retreat slightly. There’s been a “weakening” in construction activity, with 5 per cent less residential building consents issued in the year to May. “Similarly, the total value of non-residential consents is down 1.3 per cent, mainly due to weakness in the commercial building activity, down 6 per cent compared with a year earlier.” The report adds that despite a drop in retail sales growth, Manukau tourist operators are faring better than others in the region, with guests staying for more nights, while confidence among manufacturers and builders “was higher than business in general”. It says more manufacturers and builders raised their output and received more orders in the June quarter than for the previous three month period. |