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

 


Manufacturing activity lifts for Christmas

Media release
November 13, 2007

Manufacturing activity lifts as Christmas approaches

The level of expansion in the manufacturing sector for October was at its highest since May 2006, according to the Business NZ Performance of Manufacturing Index (PMI).

At 56.9, October’s seasonally adjusted PMI was up 1.8 points from September, indicating a solid period of activity in the sector (the average PMI value since the survey began is 54.5).

A PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining. PMI values for October in the years 2002-2006 ranged from 46.1 to 61.6. The 2007 result was the third highest October value, with those in 2002 and 2003 showing stronger activity.

Business NZ chief executive Phil O’Reilly says the October result is another indication manufacturers have been making steady progress in the face of challenging issues such as fluctuations in the exchange rate, labour shortages and competition from imports.

“After a recent reprieve in the exchange rate, the dollar has again climbed part-way to levels last seen in August against most major currencies, with Australia being an exception.

“Given that our closest economic neighbours are often the first port of call for those looking to export; the continued drop of the New Zealand dollar against the Australian dollar may improve export opportunities across the Tasman in the months ahead,” says Mr O’Reilly.

“It’s important businesses keep looking for opportunities to export, given the noticeable levelling-off in manufacturing export value trends and with the basic manufacturing sector (BMS) and the elaborately transformed manufacturing (ETM) sector both experiencing a subdued period in export values after three years of solid growth.

“On a positive note, various firms have found demand to be steady and are building up their stock levels for Christmas,” he says.

All five seasonally adjusted main diffusion indices again recorded expansion for the current month. Deliveries (59.7) exhibited the strongest level of expansion since 2004, followed by new orders (58.0).

Results for the various manufacturing industries were almost all positive for October. The petroleum, coal, chemical & associated product sector (72.6) continued to exhibit strong expansion (due to high production, new orders and deliveries), with the highest activity recorded since November 2004. The food, beverage & tobacco (64.5) and wood & paper product (60.9) sectors also experienced strong expansion, while the textile, clothing, footwear & leather sector (49.5) was close to no change.

Unadjusted activity for October showed expansion in all regions, with three of the four regions recording values 60.0 and over. The Otago/Southland region (65.7) continued to lead the regional results, although slightly down on the previous months’ activity level. The Northern region (62.3) recorded its highest value since November 2006, while the Canterbury/Westland region (60.0) continued a series of healthy results. The Central region (56.6) showed the lowest level of activity for October, but was still up on the September result.

Click here to view the October PMI and here to view the seasonally adjusted time series.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news