Sharechat Logo

NZ manufacturing activity chugs along in November

Friday 14th December 2018

Text too small?

New Zealand manufacturing activity grew at a slightly slower pace last month, hovering around its long-run average, as the sector recovers from a mid-year lull. 

The BNZ-BusinessNZ performance of manufacturing index decreased 0.2 points to a seasonally adjusted 53.5 in November, holding near the 53.7 long-run average. A reading above 50 separates expansion from contraction.

Manufacturing activity slowed mid-year and government figures last week showed manufacturing sales shrank for a second quarter in the three months through September, on lower volumes of meat and dairy products. 

"The improvement in the PMI since July has been underpinned by a pick-up in new orders, which achieved 56.3 in November," Bank of New Zealand senior economist Craig Ebert said in a note. "This level is usually a good portent that production will expand relatively well in the near term." 

The PMI's production measure fell 1.4 points to 51.5 in November, and employment was down 1.1 points at 51.3. New orders eased 0.7 of a point to 56.3. Finished stocks rose 1.1 points to 54.2 and deliveries were up 1.7 points at 52.5. 

Ebert said production has been expanding at a below-average rate, but has improved since the September quarter. Despite that softness, strong prices had supported New Zealand's high terms of trade, he said. 

BusinessNZ's manufacturing executive director Catherine Beard said the level of activity was in line with the long-run average and was a positive end to 2018 after a lacklustre middle of the year. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

MARKET CLOSE: NZ shares follow Asian markets higher on renewed hopes for China-US resolution
Housing Ministry head hints he acted against departed KiwiBuild head Stephen Barclay
NZ dollar heading for 1% weekly slide as outlook weakens
Currency frozen in multi-million dollar Cryptopia theft
NZ manufacturing activity hits highest level since April
Tilt affirms guidance; Dec qtr production misses long-term expectations
NZ dollar extends slide as Philly Fed lifts sentiment in US
January 18th Morning Report
MARKET CLOSE: NZ shares get further lift from positive offshore markets
NZ dollar extends decline amid mixed data

IRG See IRG research reports