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

 


NZ manufacturing extends expansion for 16th month

NZ manufacturing extends expansion for 16th month, driven by new orders, production

Feb. 13 (BusinessDesk) - New Zealand manufacturing activity expanded for a 16th straight month in January, driven by new orders and production, suggesting the relatively strong kiwi dollar hasn’t been enough to dent activity.

The BNZ-BusinessNZ seasonally adjusted performance of manufacturing index slipped to 56.2 last month from 56.4 in December. The PMI was at 55 in January 2013. A reading above 50 indicates expansion in the sector.

New orders eased to 60.2 from 61.4 in December, having held above 60 in six of the past seven months. Production rose to 59.5 from 57.2.

The strength of the New Zealand dollar against its Australian counterpart is expected to be a key theme for earnings season as it erodes the value of sales across the Tasman. Still, while respondents to the PMI survey noted the high kiwi as a negative influence, “others commented that Australia was a source of improvement and some even noted outright strength,” said Bank of New Zealand economist Doug Steel.

“The strong positive momentum from last year has continued,” Steel said. “Manufacturing growth continues despite the general strength of the New Zealand dollar.”

A major offsetting factor to the strong currency has been “a strong and pervasive upswing in domestic investment activity including rapid construction growth,” Steel said. “Another is a big increase in agriculture income courtesy of a 40-year high in the terms of trade and the increased purchasing power for investment and consumption that the country enjoys as a result.”

Four of the five main diffusion indexes in the PMI expanded in January. Employment fell to 51 from 55.2 and deliveries of raw materials rose to 56.6 from 52. Finished stocks remained in contraction at 48.4.

The Northern region’s activity reading slowed to 53.1 from 60.1, while Canterbury/Westland returned to expansion at 53 from 49.9. Otago-Southland fell back to 56.4 from 58.3 and Central remained in contraction at 48.8.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

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