none

NZ manufacturing activity hits record high

31-08-2010
by 
in 
NZ manufacturing activity hits record high

New Zealand manufacturing activity rose to its highest level on record for a July month, reflecting a broad expansion.

The BNZ-BusinessNZ performance of manufacturing index rose 4.3 points to 59.5 in July from June, the highest result for a July month since the survey began in 2002 and the third highest monthly result on record. A reading above 50 indicates the sector expanded, while a fall below 50 shows contraction.

New Zealand manufacturing is underpinned by domestic demand from the construction sector on the back of the rebuilding of earthquake damaged Christchurch and demand for housing in Auckland, the nation's biggest city. Domestic demand is outweighing a weakness in our biggest export market of Australia, where an economic slowdown and the higher New Zealand dollar are crimping demand.

"Production and new orders continue to lead the charge, with signs that employment is starting to join in," Doug Steel, an economist at Bank of New Zealand, said in a statement. "The strength is broad-based with expansion indicated by all major sub-indices across industries, regions and firm size."

The PMI showed deliveries of raw materials led the gains in July by a thin margin at 62.3, from 55.8 last month, closely followed by production at 62.2, from 56 last month. The measure of new orders rose to 62.1 from 54.8 while employment increased to 53.1 from 51.9. Finished stocks were the only segment to show a marginal dip, down to 52.6 from 52.8 in June.

Bank of New Zealand expects domestic demand to grow 3.8 percent this year, feeding into a 2.6 percent gain in gross domestic product. Similarly, domestic demand should accelerate 4.6 percent next year, helping gross domestic product expand 3.1 percent, Steel said.

In comparison, Australian gross domestic product will probably slow to a 2.2 percent pace this year from 3.6 percent last year, he said.

Source: BusinessDesk.co.nz

Related news & editorials

  1. 01.08.2018
    01.08.2018
    by      In
    The sustained growth of Australian manufacturing industry slackened off in July with the Ai Group’s Australian PMI dropping to 52.0 – down from 57.4 9 in June and further down from its high point of 63.1 in March 2018.
    However, the sector continues to grow, albeit at a slower rate, and the July... Read More
  2. 11.07.2018
    11.07.2018
    by      In
    “The National Electricity Market is largely broken and needs to be reset,” said ACCC Chair Rod Sims in launching the final report of the Australian Competition & Consumer Commission’s Retail Electricity Pricing Inquiry.
    Sims went on to acknowledge that: “Previous approaches to policy,... Read More
  3. 05.07.2018
    05.07.2018
    by      In
    The Department of Industry, Innovation & Science has released the second in its series of three Industry Insights reports for 2018 - Globalising Australia. The report, which comes from the department’s Office of the Chief Economist, concludes that future growth opportunities will come from... Read More
  4. 02.07.2018
    02.07.2018
    by      In
    Australian manufacturing has continued its run of month on month growth, with the Ai Group’s Performance of Manufacturing Index sitting steady at 57.4 for June 2018. This marks the 21st consecutive month of growth, which is the longest such run since the 50 continuous months recorded from July 2001... Read More