New Zealand manufacturing activity hits record low
Manufacturing has been hit hard by the recession, with the BNZ- Business New Zealand Performance of Manufacturing Index (PMI) for November showing the worst result since the survey began in 2002.
The seasonally adjusted PMI dropped 7.9 points to to a record-low 35.4, with all five of the main indices contracting.
It was a decline reflected around the country, with only the Otago/Southland region bucking the trend.
"The textile, clothing and footwear and leather manufacturing sectors have been hit hardest, with machinery and and equipment continuing to trend downwards," BNZ says.
"In November, only the food, beverage and tobacco sub-groups continued to show expansion."
A number below 50 on the PMI index indicates manufacturing is shrinking, and this is the case around the world, says Business New Zealand chief executive Phil O’Reilly.
"The global manufacturing depression has well and truly hit New Zealand shores and with the global PMI currently standing at 36.4, New Zealand is in good company with other developed economies.
"Any sign of a sizeable lift in activity is against the odds in the coming months. The very poor November result also begs the question - just low will overall activity fall? There's no clear indication we have yet reached the lowest point for this cycle."