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

 


NZ manufacturing falls for second month in May

NZ manufacturing falls for second month in May, as new orders decline, inventories rise

June 13 (BusinessDesk) - New Zealand manufacturing activity fell for a second consecutive month in May to the lowest level in 17 months, with a decline in new orders and a rise in inventory suggesting demand is waning.

The BNZ-Business NZ seasonally adjusted performance of manufacturing index fell to 52.7 in May from a downwardly revised 54.4 in April, and 57.6 in May last year. A reading above 50 indicates expansion in the sector.

The measure of new orders dipped to its lowest since December 2012 while inventories rose to the highest level since August 2013, pushing down BNZ's inventory-to-orders index to 49 from 64.6 at the end of last year.

"It represents a pronounced loss of momentum and so warrants some attention," Bank of New Zealand senior economist Craig Ebert said in a note. "The lower tone in the latest PMI might be providing more evidence that GDP growth, at least for the moment, is not accelerating as rapidly as some other business surveys have suggested as a 6-to12-month ahead proposition."

Still, BNZ is maintaining its forecast for GDP growth of around 4 percent this year, slowing to 3.4 percent next year, Ebert said.

Slowing growth won't come as a surprise to the Reserve Bank, which yesterday raised its benchmark interest rate for a third time, Ebert said.

"Without some sort of slowdown, inflation will pick up by more than the RBNZ already assumes," he said.

All five seasonally adjusted main diffusion indices were in expansion during May. Production was unchanged from April at 55.2, while employment contracted to 53.8 from 54.3, finished stocks rose to 52.6 from 49.8 and deliveries dropped for a fourth consecutive month to 51.4 from 54.8. New orders dropped to 51.6 from 54.6.

Three of the four regions across New Zealand were in expansion during the month, led by the Northern region which jumped to 57.4 from 53 in April. The Central region rose to 56.4 from 51.3 while Canterbury/Westland gained to 56.7 from 50.1. Meantime, Otago-Southland posted its first decline in activity since April 2013, falling into contraction at 48.1 from 57.7.


(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news