Manufacturing activity as measured by an index published by BNZ and Business New Zealand was little changed in September and the survey registered a mixed reaction to the magnitude 7.1 earthquake in Canterbury on September 4."While there were, unders
Manufacturing activity as measured by an index published by BNZ and Business New Zealand was little changed in September and the survey registered a mixed reaction to the magnitude 7.1 earthquake in Canterbury on September 4.
"While there were, understandably, a number of downbeat comments regarding the earthquake's immediate consequences, there were positive as well as negative remarks about the effect on business activity down the track," BNZ said.
Overall, the seasonally adjusted Performance of Manufacturing Index (PMI) was 49.2 in September, which was almost unchanged from August and down 1.9 points from September last year. An index less than 50 indicates the sector is contracting.
"While September's PMI looked like another disappointment the details of the survey suggested a sense of stability, even mild expansion, was in the offing," BNZ said.
"Granted, conditions underfoot appeared damp, again. However, the survey's forward-looking indicators were looking better. In this sense, the latest PMI echoes the story of the wider economy, in our view."
Three of the survey's five seasonally adjusted indices -- deliveries, production and finished stocks -- were in contraction, ranging in value between 47.1 and 47.9.
Employment, at 51.7, recovered somewhat from its drop in expansion during August, and new orders, at 50.3, recovered from two consecutive months of contraction.
The encouraging look-ahead type indicator was staffing. The PMI gauge on this edged a fraction further into expansion territory during September, with an index reading of 51.7 from 51.3.
"Sure, it's not gangbusters, by any stretch," BNZ said.
But it may indicate firms were looking beyond the immediate weakness in output.
