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


Holding on

Media release
15 November 2012

Holding on

New Zealand’s manufacturing sector returned to a minor level of expansion in October, although the sector remains in a flat state, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 50.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2.0 points up from September and the first level of expansion after four consecutive months of no expansion. Over the last quarter, the PMI has averaged 48.8, and the year to date at 51.2.

BusinessNZ’s executive director for manufacturing Catherine Beard said that any return to expansion is obviously positive news, but no one should think this is the immediate start of better times ahead for the sector.

“Looking at the history of the survey, we’ve just come out of the longest consecutive period of contraction since 2009. On the plus side, an improvement in production and a sharp rise in the number of positive comments by manufacturers are welcome. However, new orders remain historically low, while those employed in manufacturing have been in decline for five consecutive months.

BNZ senior economist Craig Ebert said the October result gives hope that the sector is stabilizing after going through a rough patch in recent months.

“The best way to describe the latest PMI result is ‘relief’, however headwinds for the manufacturing industry still prevail. The NZ dollar remains high, international demand is patchy, and the NZ economy is looking a bit bumpy and hesitant, including in employment. Until we see a more concerted and consistent pulse in the PMI, we’ll stay reticent about the sector’s immediate growth prospects.”

Three of the five seasonally adjusted main diffusion indices were in expansion in October. This was led by production (53.8), which experienced its highest result since May. This was followed by finished stocks (52.1), displaying its highest value since August 2011. After consecutive falls in activity, new orders (50.9) managed to return back into slight expansion for October, while both employment (49.1) edged lower and deliveries (49.7) improved, albeit remaining in contraction for the last five months.

Given the slight pick-up in the seasonally adjusted result, unadjusted results by region displayed expansion across the board. The Central region (57.6) led the way for a forth consecutive month, increasing 4.5 points from September. The Otago-Southland region (54.0) rose 4.2 points to display its highest result since December 2011. Both the Northern (52.1) and Canterbury/Westland (50.8) regions returned to expansion with their highest results since May this year.

Click here to view the October PMI.
Click here to view seasonally adjusted & unadjusted time series data.


PMl results are available on under ‘PMI Reports’. For more information or assistance with data interpretation, contact Stephen Summers, ph 04 496 6564, The BNZ - BusinessNZ PMI (performance of manufacturing index) draws on the depth of member companies associated with BusinessNZ: Employers and Manufacturers Association, Employers’ Chamber of Commerce Central, Canterbury Employers’ Chamber of Commerce and Otago Southland Employers Association. The survey is sponsored by Bank of New Zealand Ltd.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news