Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Manufacturers split in 2 camps

Manufacturers split in two camps: exporters, and home market suppliers

The divide between manufacturing exporters and those supplying the home market is evident in the July results of the ANZ-Business New Zealand Performance of Manufacturing Index (PMI) released today.

The PMI outcome overall for July shows New Zealand manufacturing scarcely growing with the PMI at 51.6 (over 50 indicates growth, under 50 contraction) though the construction boom continues.

>From the comments of survey respondents and other data, the economy has split into two camps, the results of which are levelling each other out, said Bruce Goldsworthy, Manager of Manufacturing Services for the Employers & Manufacturers Association (Northern).

"On the one hand, we have export dependent manufacturers struggling with the strong NZ dollar, and on the other there are those being buoyed along by the ongoing building boom," he said.

"While Statistics New Zealand reported that exports fell 11 per cent for the year ended June to $27.55 billion, Value New Zealand has just advised that house prices nationally have risen for the eighth consecutive quarter.

"Eighty per cent of respondents to the PMI survey in the northern region mentioned the constraint on their growth was caused either by the exchange rate, or that their good performance is dependent on the building phenomenon.

"Suppliers of building and building outfitting products are being supported as well by the resilience of the Australian housing market.

"But for exporters of other products, and for exports of products other than to Australia, the news is not encouraging. Elaborately transformed manufactures was the only export category to grow (by 1.5 per cent to achieve $8.76 billion) for the year ended June.

"The performance of other export categories demonstrates our present economic dependence on the housing market, with exports of dairy products (down 19.5% to $5.84 billion), meat and meat product manufacturing (down 7.3% to $4.6 billion) seafood processing (down 14.6% to $1.1 billion) scoured wool (down 30.4% to $369 million) and manufactured commodities (down 15.3% to $3.26 billion).

"A positive factor in the PMI is that new orders are holding up at 52.3 (53.9 in the northern region) though stocks of finished goods at 54.9 (50.0 in the north) are ahead of production levels at 49.2 (48.7 in the north). Employment levels are also still in positive territory at 51.5 (52.6 last month).

© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Vodafone Faces Charges Over Expired Contracts

The Commission alleges that, having agreed with a customer to terminate their service part-way through the next month, Vodafone then sent an invoice that included charges for the entire next monthly billing period. More>>


Goat Milk: New PGP For Infant Formula

A new Primary Growth Partnership programme launched today has its sights on growing a sustainable, high value goat milk infant formula industry in New Zealand. More>>


Tornado Aftermath: More Storms Forecast For New Plymouth

Up to 30 homes were damaged Monday night when a tornado roared through a New Plymouth suburb last night , cutting power lines, tearing off roofs, and toppling trees. More>>


Government Investment Rejig: Sustainable Food & Fibre Futures Launched

Growing New Zealand’s food and fibre sectors sustainably and supporting a thriving economy are the hallmarks of a new investment programme announced today by Agriculture Minister Damien O’Connor. More>>

Dump Levy Options: Waste Work Programme Announced

Associate Environment Minister Eugenie Sage has announced a programme of work to take action on New Zealand’s long-neglected waste problems. More>>


Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>