|Welcome to the October edition of our newsletter.
This month the launch of Te Pae Tawhiti (the Maori economic development strategy for this region) read more about the strategy here..
Great news, the Waimarie will be going back on to the River this weekend and all are welcome to come along to witness this great occasion. See here
Join us for the EmployAbility Breakfast on the 29th November.
You are probably aware by now that some of our local businesses have gone through a re-structuring process, we have offered those involved to get the word out that there are some really highly skilled/talented and loyal individuals in Whanganui available for employment wanting to stay and contribute to our economy. If you or your business are in a position to assist please take a look at their profiles at the following link…
Please feel free to pass this on to other interested businesses.
Happening in Whanganui…
- Whanganui District Council would like to have your feedback/input about their website. Details here…
- Council’s planning team would like you input into the proposals around Castle Cliff Coastal reserve and Queens Park development plans further information..
- Waimarie is re-launching this weekend a great effort from all involved
- Sarjeant Gallery Blue print tour on Saturday 12 November
- The EmployAbility Breakfast will be held at the Grand Hotel on 29th November.
- The IRD will be presenting a number of seminars about Starting a business as well as GST workshops , if you know someone who is starting a business or you would like a refresher then this is well worth attending.
These seminars are free of charge you just need to book your place.
To use the navigation aids please use the highlighted red areas to navigate to different sections of the newsletter and use the links ” (Top)” to get back to the top of this newsletter.
Your feedback is important to us please follow this link and let us know what you think about this newsletter it is important to us that we provide a useful tool for our business community.
- Treasury reports a solid lift in business activity and business confidence continues to point to stronger GDP growth in the second half of 2016 than forecast in the Budget Update.
- NZ property market -New record median sale prices in 4 regions as winter and lack of supply bite into sales volumes.
- Retail card sales for New Zealand still in a growth phase for the same period last year.
- New Vehicle sales in New Zealand have continued to grow and in recent months still a very healthy indication of business confidence.
- Our traffic light system gives a snapshot of the current economy. In September the trend has been good still showing strong growth in most sectors.
- Whanganui’s economy:- house sales volumes up with a 68% growth in sales volumes sales over the same month last year sales of new vehicles still strong, building consents have improved slightly. Electronic Card sales were still buoyant. The number of bed nights on commercial establishment have improved to similar levels of last year .
- Tender Notifications and expressions interest
- Contract No.1744: Airport Control Tower Renovation
We are inviting tenders from suitably experienced contractors for renovation works to the Airport Control Tower. The proposed site is within the grounds of Whanganui Airport.
- Contract No.1760: Airport Access Road & Car Parking
We are inviting tenders from suitably experienced contractors for the Design and Build of an access road and parking facility to service the proposed flight school at Whanganui Airport. The proposed site is within the grounds of Whanganui Airport, and will be operated by the New Zealand International Commercial Pilot Academy.
- Contract No. 1729: 179 St Hill Street Fire Compliance Upgrade 2016/17
Whanganui District Council are inviting tenders from suitably experienced contractors for the partial fire compliance upgrade of their four storey building at 179 St Hill Street in Whanganui.
- If you are interested in more detail or would like a copy of this newsletter as a PDF file or any suggestions/additions please fill out our survey.
Please remember to join us on our Whanganui and Partners Facebook page to keep up with what is happening on a regular basis we like to be liked as well!
Source WDC Mar 16
New Zealand Economy
A solid lift in business activity and business confidence continues to point to stronger GDP growth in the second half of 2016 than forecast in the Budget Update.
- Demand in the economy is driven by elevated net migration inflows, housing demand and tourism spending. The export price recovery is expected to continue.
- Annual inflation remained weak in the September quarter, owing to low petrol prices and a reduction in vehicle levies. However, inflation is expected to rise from here.
- International data were mixed but generally positive and expectations of US monetary tightening increased.
Economic data released in October continued to point to faster GDP growth in the second half of 2016 than forecast in the Budget Economic and Fiscal Update. The Quarterly Survey of Business Opinion showed a strong expansion in business activity in the September quarter and a lift in business confidence, driven by the construction and tourism industries. Demand in the economy continues to be propelled by record net migration inflows, housing demand and tourist arrivals, while household retail spending was also solid. All told, data point to real GDP growth in the September quarter of around 0.8%. Read the full report here….
NZ House sales (Top)
Regions power on as Auckland draws breath.
- New record median sale prices in 4 regions as winter and lack of supply bite into sales volumes
- Four regions hit new record high median sale prices in July, with the national median sale price rising by $5,000 to $505,000, only $1,000 shy of the record median price reached in May 2016, according to the latest data released today by REINZ.
- The Waikato/Bay of Plenty region recorded its eighth record median sale price in nine months, reaching $450,000 (up 2.7% on June 2016), while the median price in Auckland reached $825,000 (up 0.5% on June 2016), Northland reached $376,000 (up 4.4% on June 2016) and Manawatu/Wanganui reached $265,000 (up 6.4% on June 2016).
- Inventory continues to fall rapidly nationwide, with a 33% decline in properties available for sale year-on-year and six regions seeing falls of greater than 40%. Wellington and Hawke’s Bay each have less than 10 weeks of supply available, with Waikato/Bay of Plenty at just on 10 weeks supply.
- At the same time, the number of residential dwelling sales for July 2016 was 7,299, a drop of 7% on June. Sales volumes also fell 10% compared to July 2015, with sales for Auckland falling just over 20% compared to July last year.
Read the Full report here…
NZ Retail Card Spend (Top)
Retail growth has remained steady in September with growth across most of the sectors monitored. The sectors which are still under pressure are furniture and flooring and apparel which were still marginal down on the previous year. Fuel sales values were also down but this is due to a weaker oil price rather then lack of demand which is helping keep inflation at low levels.
Top Categories were takeaways, accommodation bars cafes & restaurants and accommodation which is a consistent trend reflecting the strength of the national tourism sector.
NZ New Vehicle Sales (Top)
New Vehicle sales in New Zealand have continued to grow and in recent months the 12 month moving average growth has rebound strongly with only negative growth recorded in November and January over the previous year. In September 2015 a total of 8 382 new cars were sold and in September 2016 the figure was up to 9 704 a healthy increase of 0.1%.
House sales have continued to lead the way in the local economy with good sales recorded once again the local indicators we monitor are still showing positive growth which is good for our economy we have also seen an increase in building consents as the housing stock comes under pressure. New car sales have continued to grow with a steady positive trend.
Whanganui and Region House sales (Top)
Sales volumes rose 24% compared to September 2015, with sales rising 68% in Wanganui, 19% in Manawatu Country and 9% in Levin. Compared to August sales volumes fell 6%, with sales rising 7% in Levin and 4% in Palmerston North, but falling across the rest of the region. On a seasonally adjusted basis sales across the region rose 6%, indicating that the fall in sales was larger than normal.
The median price across the region rose $16,600 (+7%) compared to September 2015. Prices rose 27% in Levin, 18% in Manawatu Country, and 10% in Wanganui. Compared to August the median price rose $10,100 (+4%), with prices rising 2% in Palmerston North, but falling 1% in Wanganui and Levin. On a seasonally adjusted basis the median price rose 2% compared to August.
The number of days to sell improved by two days in September, from 30 days in August to 28 days in September. The number of days to sell improved by 10 days compared to September 2015. Over the past 10 years the average number of days to sell during September for the region has been 45 days. There is currently 13 weeks of supply available across the region, a drop of 15 weeks over the past 12 months.
REINZ Spokesman, Bryan Thomson noted that, “Inventory levels continue to rapidly decline across the region with only 13 weeks of supply available, a drop of more than 50% over the past 12 months. Enquiry from first home buyers remains steady with a strong jump in the number of open homes.”
Graph Commentary: The volume trend is continuing to rise. The days to sell trend is now also rising. The overall trend for the region continues improving.
Whanganui Card Spend(Top)
The top category this month was Hardware and Homeware with furniture and flooring new entrants showing a positive growth appliances have also shown good growth all of these categories align with the strong property market.
Top 3 sectors were
- Hardware and Homeware
- Furniture and flooring
The bottom three sectors were
- Fuel (Lower pump prices- which in effect is a positive)
- Apparel (flat and affected by changed market dynamics)
Card spend comparison by region monthly growth over previous year
Source Market View
Card spend comparison by region month growth over previous year
Card spend comparison by region monthly growth over previous year dollar value of goods purchased September 2016.
Source Market View
Whanganui still had positive growth in September and was third behind Ruapehu and Rangitikei which are both off lower bases.
Whanganui New Vehicle Sales (Top)
In September 2016 new vehicle sales were up on the previous year again with 66 new vehicles sold as opposed to 65 sold in the previous year pushing the moving average growth to 2.2% there are large fluctuations in sales from month to month but the overall trend is still in positive territory. Over the past 12 months only two months (November and December) have shown negative growth. The trend over the longer term still remains positive in spite of the erratic nature of sales in this sector. The moving average car sales has moved from 60 in October to 70 in September which reinforces the fact that this sector has experienced strong growth over the 12 month period.
Building Consents – Whanganui (Top)
In September 2016 there were 63 Building Consent applications. Based on a 12 month moving average we have again seen an improvement in value of consents passed with strong growth indicating the individual values of projects in a growth phase.
Source Whanganui District Council