Sharechat Logo

NZ March manufacturing expansion slows to lowest pace since last July

Friday 12th April 2019

Text too small?

New Zealand's March manufacturing activity continues to expand but at the slowest pace since July last year as production and new orders eased.  

The Bank of New Zealand-Business NZ performance of manufacturing index eased 1.5 points to a seasonally adjusted 51.9 in March , and was down from a 53.7 reading in the same month a year earlier. A reading above 50 indicates activity is expanding.

BusinessNZ's executive director for manufacturing Catherine Beard said that the slow level of expansion for March meant the first quarter of 2019 averaged out at 52.7, which was below the long run average of 53.4 for the survey. 

The production sub-index fell 2.2 points to 51.4 while the new orders were down 1.9 points at 52.5.  Finished stocks fell 1.9 points to 53.1 while deliveries were down 2.6 points to 52.3. The only sub-index to show a lift was employment, up 1.1 points to 51.9. 

BNZ senior economist Craig Ebert, however, was relatively upbeat about the data.

"Slow as it might appear, New Zealand’s PMI of 51.9 in March was certainly doing well in a global context. Of all the deceleration that has occurred in the world economy over the last 6-12 months, manufacturing has been at the forefront," he said. 

The global slowdown "has been tied to a rocky patch in cross-border trade and a reservation regarding investment – all aggravated by unresolved 'trade tensions'  and uncertainties between major countries and blocs," said Ebert. 

He noted the message that the manufacturing industry is "toughing it out" is consistent with the latest quarterly survey of business opinion from the New Zealand Institute for Economic Research. 

"Sure, it found manufacturers decidedly downbeat about the general economic outlook. However, when it came to own activity, the QSBO showed manufacturing more mixed than it was negative," he said. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Stanley-Tallwood liquidator cuts deal over KiwiBuild development
Stanley-Tallwood liquidator cuts deal over KiwiBuild development
RBNZ expected to keep OCR at 1% but leave door open to more easing
Watch for signs of domestic and global corporate health this week
ANALYSIS: Govt will have to pay up for high-rise and other construction
23rd September 2019 Morning Report
RBNZ needs more resources, not more powers: Bascand
NZ dollar hovers near 4-yr low after IMF says downside risks have increased
MARKET CLOSE: NZ shares gain; index reweighting drives heavy trading in Kiwi, Kathmandu
NZ dollar sags after avalanche of data and central bank action

IRG See IRG research reports