PMI Survey - Manufacturing Activity Subdued

Media release 14 October 2005

Manufacturing activity subdued

Manufacturing activity was subdued in September, according to the ANZ-Business Performance of Manufacturing Index (PMI).

The PMI for September showed a value of 52.3, down from 53.1 in August, and almost identical to the value recorded in June. Scores above 50 indicate that activity is expanding; below 50 indicate a decline.

The September 2005 result was considerably lower than the previous three September results, ranging between 56.8 to 60.5 from 2002 to 2004.

The level of activity by region for September was very similar to the August results. The Otago/Southland region (59.8) continued to record the highest level of expansion, while the Canterbury/Westland region (46.7) was the only region to record a fall in activity.

Production (53.9) experienced its highest level of activity since February, and led the major sub-indexes in September. All other sub-indexes displayed relatively similar levels of expansion, with employment (48.8) experiencing the only decline.

The lacklustre September result shows a continued softening in the manufacturing sector compared with previous years. Comments from manufacturers have again centred on a lower number of orders for this time of year, with many stating the uncertainty surrounding the general election playing a part in unseasonably flat activity. Exchange rate issues and difficulty in obtaining staff still persist.

PMI for Sept 2005 http://img.scoop.co.nz/media/pdfs/0510/051013_PMI_for_Sept_2005.pdf

Supplementary graphs PMI Sept 2005 http://img.scoop.co.nz/media/pdfs/0510/051013_Supplementary_graphs_PMI_Sept_2005.pdf

Full results are available on www.businessnz.org.nz under 'PMI Reports'.

Six-Month Release Date Schedule for the Business NZ Performance of Manufacturing Index (PMI)

PMI Release Release Date

October 2005 11 November 2005

November 2005 16 December 2005

December 2005 27 January 2006

January 2006 17 February 2006

February 2006 17 March 2006

March 2006 13 April 2006

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