none

NZ MANUFACTURING STILL EXPANDING DESPITE DIP IN PRODUCTION

25-08-2014
by 
in 

New Zealand manufacturing activity fell in July while remaining in expansion for the 22nd straight month, according to latest industry data.

An increase in new orders in July made up for a dip in production and employment.

The BNZ-Business NZ seasonally adjusted performance of manufacturing index fell to 53 from last month from 53.3 in June from a downwardly revised 52.6 in May, although below 54.9 in June last year. A reading above 50 indicates expansion in the sector.

The manufacturing sector in New Zealand has proven resilient in the face of a strong New Zealand dollar, which erodes the value of overseas sales, said Bank of New Zealand senior economist Doug Steel.

Those headwinds have receded as the kiwi dollar has come off its highs.

Manufacturers are also likely to benefit from local sales into the construction industry, Mr Steel said.

All five diffusion indexes in the PMI were in expansion in the latest month. New orders rose to 55 from 52.2 in June while production fell 1.9 points to 54, the lowest level since March last year. Employment fell 1.4 points to 51.3.

Finished stocks rose back into expansion at 51.5 while deliveries slipped 1.9 points to 53.3.

BNZ economist Stephen Toplis said manufacturing had probably passed its peak in terms of growth, but activity levels are still robust.

Related news & editorials

  1. 21.02.2019
    21.02.2019
    by      In
    As information technology (IT) departments become more sophisticated and improve their identification and response to cybersecurity breaches, many manufacturing companies (particularly at the SME scale) are becoming more susceptible to cyber attacks via their operational technology (OT).
    According... Read More
  2. 19.02.2019
    19.02.2019
    by      In
    The adoption of artificial intelligence is rapidly growing in the workplace; however, to take full advantage of the opportunities, businesses need to overcome lingering doubts from their customers and employees, according to new research from Genpact, a global professional services firm focused on... Read More
  3. 19.02.2019
    19.02.2019
    by      In
    The 2018 needles in strawberries episode served as a warning to all of Australian industry: failure to take security seriously can have disastrous consequences. However, it also served to highlight just how vulnerable manufacturing industry is to malicious acts, whether by disgruntled employees or... Read More
  4. 19.02.2019
    19.02.2019
    by      In
    MachineryHouse has continued its expansion across the ditch with the opening of a second branch in New Zealand. The new Christchurch MachineryHouse joins the existing branch in Auckland, and will greatly improve the service to customers all over the South Island.
    The new retail operation opened in... Read More