Northern Manufacturers Lead Growth
Northern manufacturers lead growth
Manufacturers in the north of the country were the fastest growing in August, for the second time in the past three months. They registered an increase of 0.5 over July to reach 61.1, according the ANZ-Business New Zealand Performance of Manufacturing Index (PMI).
An early build up to the Christmas season is reported as a principal reason for the expansion, with skills shortages and adverse weather cited as constraints on further growth.
Overall in August New Zealand manufacturing expanded 1.3 points on the PMI to 58.8, stronger than in the previous years. (A PMI above 50 indicates expansion and below 50 decline).
"With the new orders sub index (66.5) exceeding the total, and stocks of finished goods (59.9) below it, manufacturers are expecting the good run to continue," said Bruce Goldsworthy, Manufacturing Services Manager for the Employers & Manufacturers Association (Northern).
"Employment levels in manufacturing have scarcely changed lately though many firms are reporting they are running at capacity.
"Other things being equal, a surge of investment in new plant and equipment should follow, with skills training continuing to build.
"Indeed, a large chunk of the 7.5 per cent increase in sales of New Zealand made machinery and equipment recorded in the June quarter in the Economic Survey of Manufacturing will be in response to local investment orders.
"Sales of locally made investment machinery and equipment reached $6.3 billion for the year ended June, with about 60 per cent going to boost local production and the other $2.4 billion exported."