none

NZ manufacturing activity continues to rise

15-02-2010
by 
in 
NZ manufacturing activity continues to rise

Manufacturing is keeping up a six-month run of solid expansion, with signs of many more new jobs in the sector, according to a business survey.

The latest monthly BNZ-Business NZ Performance of Manufacturing Index was 56.2 points for February, close to levels seen for the past half year.

An index above 50 points indicates that the sector is expanding and under 50 that it is contracting.

The NZ Reserve Bank has pointed out a strong link between the lift in the construction sector and manufacturing, with the flow-on effect from the massive Canterbury rebuild.

The Reserve Bank forecast economic growth of 3.5 per cent this year, and is predicting about 100,000 new jobs will be created over the next couple of years.

BusinessNZ's executive director for manufacturing, Catherine Beard, said the manufacturing index was in one of its most stable periods of expansion since the survey began.

"The last six months of manufacturing expansion have remained at the 56-point value, which represents a very solid level of activity," Ms Beard said.

BNZ senior economist Craig Ebert said the "real news" in the survey was in the employment index, now close to a record high for this sector since 2003.

"This is evidence that the economic upswing is gaining momentum, spreading across industries and fully radiating into the labour market," Ebert said.

The latest Statistics NZ figures showed a strong December quarter for manufacturing, with volumes up 5.7 per cent in the three months, boosted mainly by the meat and dairy sectors, up 15 per cent.

The latest PMI survey showed production (58.9) produced the highest level of expansion for the first time since July 2013.

New orders (56.9) slipped to its lowest level since June 2013, while employment (54.4) was up 3.2 points to record its second-highest level since May 2013.

Source: Fairfax

Related news & editorials

  1. 23.04.2018
    23.04.2018
    by      In
    Sidewood Estate has put the finishing touches on it $4 million winery expansion in the South Australian town of Nairne, which includes one of the most technologically advanced bottling lines in the Adelaide Hills region.
    The bottling line can fill and label up to 3000 bottles per hour with an... Read More
  2. 23.04.2018
    23.04.2018
    by      In
    BAE Systems has formalised a deal to source almost 50,000 tonnes of Australian steel to build Future Frigates for the SEA 5000 programme, should it win the tendering process. 
    Under the agreement, Bluescope Steel and Liberty OneSteel will provide steel components for BAE's Global Combat Ship-... Read More
  3. 23.04.2018
    23.04.2018
    by      In
    Melbourne-based packaging giant Visy is aiming to rapidly increase its investments in automation, with the end goal of having a fully automated factory. 
    “We have a vision which I call the ‘lights out’ factory - a fully automated box factory that operates in the dark because robots don’t need... Read More
  4. 23.04.2018
    23.04.2018
    by      In
    With international electric vehicles failing to make an impression on the Australian market, a local manufacturer has stepped up to the plate to provide some much-needed competition. 
    ACE Electric Vehicles is planning to produce Australian-manufacturered electric cars, with the goal of releasing... Read More