Big lift in Waikato/Bay of Plenty in manufacturing

Big lift in Waikato/Bay of Plenty in manufacturing action

Waikato and Bay of Plenty manufacturing registered a big expansion in June according to the latest ANZ-Business NZ Performance of Manufacturing Index (PMI).

The Waikato and Bay of Plenty Regions PMI bounded up from 54.5 in May to 69.2 in June. A PMI reading above 50 indicates expansion; below 50 indicates decline.

All five sub-indices rose in June, led by production levels and new orders (72.7!) New orders has been the highest sub-index throughout 2004 giving rise to the prospect of further expansion to come.

The employment levels index at 61.8 has shown a welcome boost too from the previous month (50.0).

Margaret Comer, chair of EMAWaikato, said the signs for growth are encouraging despite manufacturers facing more compliance costs, the high Kiwi dollar, and especially the difficulties in attracting skilled employees.

"Waikato and Bay of Plenty has benefited strongly from the confidence on display at the recent field days," she said.

"That gave manufacturers increased orders to add to the growth cycle, and feed back into higher living standards in the community.

"Some companies are finding they now have to cope with sudden cost pressures as metal and fuel prices rise as demand surges in the U.S. and China.

"The Australian manufacturing scene in June saw demand pegged back in June with rising costs easing Australia's PMI down to 50.6, well below the BOP and Waikato region."

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