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


NZ manufacturing expands as firms look across the Tasman

NZ manufacturing still expanding as firms look across the Tasman

By Paul McBeth

(BusinessDesk) – New Zealand manufacturing continues to underpin the nation’s economic recovery, as Australian buyers help stoke demand.

The BNZ-Business New Zealand performance of manufacturing index slipped 1.1 point to 53.2 last month, remaining above the 50 level that separates contraction from expansion.

The new orders component registered the biggest expansion at 56, followed by deliveries at 53.7 and employment at 52.2. Production fell 0.6 points to 51.8, while finished stocks returned to expansion at 50.7.

“This is important momentum to confirm, especially in the event that the latest world financial market wobbles dent confidence as it well might,” BNZ economist Doug Steel said in his report. “The NZ economy has a decent amount of momentum to carry it through at least some short term nervousness in world financial markets.”

Manufacturing has regularly been one of the strongest-performing industries in recent economic surveys, as New Zealand’s economy bounces back faster than analysts expect. The sector made up 12.5% of the gross domestic product in the three months ended March 31, and was the fastest growing sector at a quarterly pace of 3.6%.

Catherine Beard, Business NZ executive director for manufacturing, said local manufacturers have been enjoying the weak cross-rate with the Australian dollar, with the kiwi dollar recently trading at 79.84 Australian cents, and there was a ready market across the Tasman.

Canterbury/Westland reported the greatest regional expansion at 56.3, followed by Northern region’s 53.3 and central’s 50.8. Otago/Southland remained in contraction at 48.5.

Machinery & equipment manufacturers were the fastest expanding sub-group at 557.9, followed by food, beverage & tobacco at 54.1, while petroleum, coal, chemical and associated products stayed in contraction at 45.4.

Manufacturers lifted the average wage rate 0.9% to $24.75 an hour in the three months ended June 30, according to the Quarterly Employment Survey, for an annual increase of 3.6%.

At the same time, manufacturers cut the number of people employed to 244,700 in the June quarter from 252,000 in the March period, according to the Household Labour Force Survey.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Transport: Successful Bridge Repair Opens Two Additional Lanes To Traffic

The opening of two additional lanes on the Auckland Harbour Bridge this morning will help relieve some motorway congestion for motorists heading home to the North Shore tonight. More>>


Statistics New Zealand: COVID-19 Sees Record 12.2 Percent Fall In New Zealand’s Economy

Gross domestic product (GDP) fell by 12.2 percent in the June 2020 quarter, the largest quarterly fall recorded since the current series began in 1987, as the COVID-19 restrictions in place through the quarter impacted economic activity, Stats NZ said ... More>>


Climate: Scientists Release ‘Blueprint’ To Save Critical Ecosystems And Stabilize The Earth’s Climate

A group of scientists and experts produced the first comprehensive global-scale analysis of terrestrial areas essential for biodiversity and climate resilience, totaling 50.4% of the Earth's land. The report was published in Science Advances ... More>>


MPI: Independent Review Launched Into Assurances For Safe Transport Of Livestock By Sea

The Ministry for Primary Industries (MPI) has launched an independent review of the assurances it receives for the safe transport of livestock by sea. MPI Director-General Ray Smith says Mike Heron QC has been appointed to lead the review, which is expected ... More>>


Computers: New Zealand PC Market Grows Nearly 40% Due To Work From Home Demand

COVID-19 had large impacts on demand for PCs as businesses prepared for lockdowns by purchasing notebooks to mobilise their workforce. In the second quarter of 2020, New Zealand's Traditional PC market experienced a 39.7% year-on-year (YoY) growth ... More>>


University Of Auckland: Whale-Watching By Satellite – Follow Their Travels Online

Scientists have successfully attached satellite tracking tags to six New Zealand southern right whales, or tohorā, and are inviting the public to follow the whales’ travels online. Part of a major research project involving the University of Auckland ... More>>

Commerce Commission: Kiwibank Admits System Failures And Agrees To Pay Customers $5.2 Million

Kiwibank has entered into a settlement agreement with the Commerce Commission after reporting that it failed to have in place robust home loan variation disclosure policies, procedures and systems. In a settlement dated 27 August 2020, Kiwibank admitted that ... More>>

Ministry of Health: Public Transport Distancing Requirements Relaxed

Physical distancing requirements on public transport have been reviewed by the Ministry of Health to determine whether they are still required at Alert Level 2 (or below). The Ministry’s assessment is that mandatory face covering and individuals tracking ... More>>


NZHIA: New Zealand Hemp Industry Set To Generate $2 Billion Per Annum And Create 20,000 Jobs

A new report says a fully enabled hemp industry could generate $2 billion in income for New Zealand by 2030, while also creating thousands of new jobs. Written by industry strategist Dr Nick Marsh, the report has prompted calls from the New Zealand Hemp ... More>>


Stats NZ: One In 14 Employed People Report High Risk Of Losing Jobs

About one in 14 workers say they expect to lose their job or business by mid-2021, Stats NZ said today. A survey of employed people in the June 2020 quarter showed 7 percent felt there was a high or almost certain chance of losing their job or business ... More>>

ASB Quarterly Economic Forecast: NZ Economy Doing Better Than Expected, But Challenges Remain

August lockdown estimated to have shaved 8% off NZ’s weekly GDP, and 0.5% off annual GDP Economy now expected to shrink 5% (year-on-year) by end of 2020 Unemployment rate now expected to peak at 7.2% The latest ASB Quarterly Economic Forecast is less ... More>>