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

 


Middling May

13 June 2014

Middling May

Although still in positive territory, a second consecutive slowdown in expansion meant the manufacturing sector was at similar levels last seen over a year ago, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for May was 52.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). While this was 1.7 points lower than April, the sector has now been in expansion for 20 consecutive months.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the lower level of expansion for May was mainly due to new orders coming down from recent strong levels.

“While new orders were at their lowest level since December 2012, comments from manufacturers were generally split into two camps on the issue. While some were noticing a lack or drop off in orders, others were experiencing continued demand and strong growth.

“Looking ahead, the fundamentals of both the PMI and other indicators of the economy still point to positive activity. However certain variables, such as the strong New Zealand dollar against the Australian, will likely cause some head winds.”

BNZ senior economist, Craig Ebert says, “While large chunks of the latest PMI remain encouraging, the interplay of softening orders alongside rising inventory counsels a bit of caution regarding the extent of manufacturing growth in the pipeline.”

All five seasonally adjusted main diffusion indices were in expansion during May. Production (55.2) again led the way for the current month with a value unchanged from April. In contrast, new orders(51.6) fell to its lowest level of expansion since December 2012. Employment (53.8) remained in healthy territory, despite falling 0.5 points over the month. Finished stocks (52.6) went back into expansion during May, while deliveries (51.4) dropped for the fourth consecutive month.

Three of the four regions were in expansion during May. In the North Island, the Northern region (57.4) increased 4.4 points, while the Central region (56.4) recovered most of the drop it experienced the previous month. In the South Island, the Canterbury/Westland region (56.7) showed solid expansion levels, while the Otago-Southland region (48.1) slid 9.6 points to record its first decline in activity since April 2013.

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

PMl 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

 

Broadband Network: Spark Launches New, Competitive Ultra Fibre Plan Line-Up

Spark is giving customers an even more compelling reason to switch to its Ultra Fibre plans from today with the introduction of new competitive pricing for the majority of its plans (details below) and Fibre Landline (voice-over-fibre technology) for ... More>>

Employment: ANZ Proposes Casualisation In Whangarei Stores

ANZ workers in Whangarei could see their incomes drop by 20 to 40 percent if the bank’s proposal to reduce the number of full-time positions goes ahead says FIRST Union national organiser Tali Williams. More>>

Finance: BNZ Develops Specialist Tāmaki Māori Banking Team

BNZ develops specialist Tāmaki Māori Banking Team to support Māori as Auckland grows More>>

Pharmaceuticals: Commerce Commission To Consider Pharmaceuticals Merger

The Commerce Commission has received an application from Pfizer Inc. seeking clearance to acquire all of the shares in Hospira Inc. More>>

Real Estate: Housing Unaffordability Issues Spread

Surging house prices in Auckland and Queenstown last month pushed home ownership even further beyond the reach of first home buyers in the two districts, according to the AMP360 Home Loan Affordability Report for March. More>>

Statistics NZ: Annual Exports To China Dip Below Australia

The value of goods exports to Australia ($8.7 billion) surpassed those to China for the year ended March 2015, Statistics New Zealand said today. More>>

Science: Hookworm Discovery At Malaghan Institute

Professor Graham Le Gros has led a team which has stimulated both innate and memory responses to the parasite, discovering along the way the unexpected behaviour of one particular immune cell, in Hookworm, one of the world’s most devastating tropical ... More>>

Business: Provinces Urged To Make Full Use Of New Air Services

Provincial New Zealand has been urged to use new air services to Auckland or risk losing them either partially or completely. The stark warning was issued today by Far North mayor John Carter at a ceremony at Kaitaia airport to mark the final Air ... More>>

Mobile: 2degrees To Credit All Calls And SMS To Nepal

In the wake of the devastating earthquake in Nepal in the weekend, 2degrees will be crediting all calls and SMS messages made to mobiles and landlines in Nepal from Friday 24th April until midnight Wednesday 29th April. More>>

Scoop Business: Alex Swney Pleads Guilty To $2.5M Fraud Charge

Alex Swney, former chief executive of the Auckland city centre business association Heart of the City, has pleaded guilty to dishonestly using documents to obtain $2.5 million. More>>

ALSO:

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news