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

 


Flat End To Manufacturing Year

Media release
24 January 2012

Flat End To Manufacturing Year

New Zealand’s manufacturing sector year ended with a flat result, much as it had been throughout 2012, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for December was 50.1 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). While this was 1.3 points up from November, the PMI averaged a generally flat value of 50.9 over 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the December result was symptomatic of what manufacturers experienced in 2012.

“Five of the 12 months were in contraction, with only two months (February and May) showing any sufficient levels of expansion. However, despite the fairly unexciting result, comments by manufacturers remain more positive than negative, while we remain well ahead of where Australian manufacturing sits at present with all but two of their months in contraction. Also, the latest JPMorgan Global Manufacturing PMI for December (50.2) shows that what we are experiencing is really no different to other countries.

“2013 will most likely present similar challenges for many manufacturers, although the long awaited expectation of increased growth due to a slowly improving global economy, along with further upwards momentum in the Christchurch rebuild, should assist in driving up demand for products.”

BNZ economist Doug Steel said, “December looked a lot like 2012 as a whole for manufacturing – lots of ebb and flow. For every indicator that looked to be doing a bit better, there seemed to be another one slipping the other way. At least production-wise, there looks to have been enough over the past three months for manufacturing to make a positive contribution to Q4 GDP growth.”

Only one of the five seasonally adjusted main diffusion indices were in expansion for December, with production (52.5) recovering from a decline in November. However, the other key index of new orders (48.9) fell back into contraction. Finished stocks (48.8) also fell back into contraction after three months of continued improving results, while deliveries (49.9) were at all but no change. Employment (49.1) remained in a tight contraction band that has now lasted for four consecutive months.

While all regions experienced a fall in unadjusted activity over December, the drop was more prominent in the North Island. The Northern region (48.4) fell 8.2 points, while the Central region (46.3) fell 5.4 points to be both in contraction for the first time since April 2012. In contrast, both regions in the South Island remained in expansion. The Otago-Southland region (60.0) fell 5.0 points from November, while the Canterbury/Westland region (53.4) dropped 8.6 points.

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

PMI results are available on www.businessnz.org.nz under ‘PMI Reports’.

The BNZ - BusinessNZ PMI (performance of manufacturing index) draws on the depth of member companies associated with BusinessNZ: Employers and Manufacturers Association, Business Central, Canterbury Employers’ Chamber of Commerce and Otago Southland Employers Association. The survey is sponsored by Bank of New Zealand Ltd.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news