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

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news