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


NZ manufacturing expansion pace slows: PMI

NZ manufacturing continues expansion, pace slows from September

Nov. 12 (BusinessWire) – New Zealand manufacturing continued its expansion for a second month, albeit at a more moderate clip as the measure of employment fell back into contraction.

The BNZ Capital-Business NZ Performance of Manufacturing Index (PMI) slipped 0.9 points to 50.6 in October from September, when it turned positive for the first time in 19 months. A PMI reading above 50 points indicates manufacturing activity is expanding, below 50 points indicates contraction.

The PMI's tentative reading last month underlines the tepid pace of recovery in an economy that just managed to climbed out of recession in the second quarter, with growth of 0.1%. Reserve Bank Governor Alan Bollard has held off raising interest rates like his Australian counterpart though some economists predict he will begin tightening in April.

“It’s unlikely to be all strongly onwards and upwards from here,” said Craig Ebert, senior economist at Bank of New Zealand. “The economic improvement we envisage still looks like being a gradual one, choppy in its composition, and not without risks of major disappointment overall.”

Of the five diffusion indexes in the PMI, production slipped to 51.2 from 51.6 in September. New orders fell 2.3 points to 53.4, employment fell to 46.5 from 51.2, deliveries of raw materials sank to 49 from 51.1 and finished stocks climbed to 47.4 from 44.4.

New Zealand’s PMI lagged behind the JPMorgan Global PMI last month of 54.4, a 39-month high, and the U.S. PMI at 55.7. Australia’s PMI fell 0.3 points to 51.7.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Frog Recruitment: Kiwi Workers Reluctant To Make Business Trips Across The Ditch Despite Trans-Tasman Bubble Opening

When the trans-Tasman travel bubble opens today, many Kiwi companies won't be rushing to buy an air ticket, reluctant to cross the ditch to do business. The latest survey conducted by leading recruitment agency, Frog Recruitment of nearly 1,000 New Zealand ... More>>

Tourism: Employers Welcome Back Working Holidaymakers

Tourism businesses gearing up for the return of Australian visitors from next week will be relieved to learn that they will also have access to an offshore pool of much-needed job candidates, Tourism Industry Aotearoa says. Tourism employers around ... More>>

Commerce Commission: Latest Broadband Report Confirms Improved Performance Of Premium Fibre Plans

The latest report from the Commerce Commission’s Measuring Broadband New Zealand programme shows that the performance of Fibre Max plans has improved substantially. This follows a collaboration between the Commission, its independent testing partner, ... More>>

Air New Zealand: Capital Raise Deferred

Air New Zealand has decided to defer its planned capital raise to later in 2021 allowing more time to assess the impacts of recent developments on the airline’s path to recovery. 'We’ve seen some clearing of COVID-19 clouds recently, with ... More>>

Stats NZ: New Report Shows Impact Of Demands On Land In New Zealand

A new environmental report released today by the Ministry for the Environment and Stats NZ, presents new data on New Zealand’s land cover, soil quality, and land fragmentation. The land cover data in the report, Our land 2021 , provides the most ... More>>


Stats NZ: March Card Spending Rebounds Despite COVID

There was a lift in retail card spending in March following a fall in the lockdown-disrupted February month, Stats NZ said today. Seasonally adjusted retail card spending rose by $53 million (0.9 percent), compared with February 2021. Visit our website to read ... More>>

PwC: Outcome Of Review Into Air New Zealand Gas Turbines Business

Air New Zealand has received the report into its Gas Turbines business from independent external advisers PwC. Air New Zealand Chairman Dame Therese Walsh says the report identified a range of effective controls in the Gas Turbines revenue contracting ... More>>