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

 

Marching onwards

Marching onwards

Activity in New Zealand’s manufacturing sector continued to march onwards, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for March was 58.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 1.9 points higher than February and the highest level of activity since July 2013. The sector has now been in expansion for 19 consecutive months, with the first quarter of 2014 averaging 57.1.

BusinessNZ’s executive director for manufacturing Catherine Beard said that there were a number of pleasing aspects to the March result.

“After five consecutive months of solid activity, it was pleasing to see activity experience a further boost. Both production and new orders remained strong, while employment also lifted to its highest level for over six years.

“The proportion of positive comments from manufacturers for March broke the 60 percent value for the first time this year, as new orders/customers and an improving economy is providing a stronger platform for business growth.”

BNZ Head of Research Stephen Toplis said, “The manufacturing sector is in a buoyant mood – and rightly so. However, the economy and financial markets are at an inflection point. At such times, the potential for significant movements in interest rates and exchange rates is heightened. Given this, businesses need to focus on risk management to ensure that the impact of such risks can be mitigated.”

For the first time since October 2013, all five seasonally adjusted main diffusion indices were in expansion for the current month. Both production and new orders (60.5) displayed the same level of expansion, while employment (56.3) rose 1.6 points to record its highest level since November 2007. Deliveries of raw materials (57.1) edged slightly downwards from February, while finished stocks (51.1) went back into expansion after four consecutive months in contraction.

All four regions were again in expansion during March, with levels very similar across the country. In the North Island, the Northern region (59.2) rose 6.3 points, while the Central region (57.6) was almost identical to February’s result. In the South Island, the Canterbury/Westland region (59.9) picked up 6.2 points from February, while the Otago-Southland region (59.8) dipped 1.9 points.

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

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Petya: New Ransomware Campaign Hits Worldwide

A new ransomware campaign known as Petya is affecting computer networks using Microsoft Windows. It was first seen affecting systems in the Ukraine, but is quickly spreading across other computer networks in Europe. More>>

ALSO:

Skodafone Goneski: Sky TV, Vodafone Drop $3.44 Billion Merger Plan

Sky Network Television and Vodafone New Zealand have terminated their merger agreement which aimed to create the country's largest telecommunications and media group, and have withdrawn an appeal against the Commerce Commission's rejection of the plan. More>>

Quake Insurance: Reforms To EQC Act Announced

· Increasing the monetary cap from $100,000 (plus GST) to $150,000 (plus GST) for EQC building cover.
· Clarifying EQC land cover is for natural disaster damage that directly affects the insured residence or access to it... More>>

ALSO:

Reserve Bank: Official Cash Rate Unchanged At 1.75 Percent

Global economic growth has increased and become more broad-based. However, major challenges remain with on-going surplus capacity and extensive political uncertainty... More>>