The manufacturing sector managed to post its fifth onth of solid, though unspectacular growth, according to the BNZ Business New Zealand Performance of Manufacturing Index (PMI).The PMI for January of 52 decreased a point from December to return almost to
The manufacturing sector managed to post its fifth onth of solid, though unspectacular growth, according to the BNZ Business New Zealand Performance of Manufacturing Index (PMI).
The PMI for January of 52 decreased a point from December to return almost to November's level of activity. A figure over 50 indicates the sector is generally expanding.
Since expansion returned in September, activity has remained within a band of only three points between the highest and lowest values.
"After five months of solid, if unspectacular, expansion we have now reached a phase where monthly results are consistent and new orders continue to drive activity. Comments from manufacturers surveyed for the PMI highlight increased offshore orders as a key catalyst for improved activity," said Catherine Beard, Business NZ's executive director for manufacturing.
"However, employment within the manufacturing sector remains stubbornly stuck in contraction. Employment is usually the last indicator to turn around once new orders and production begin to pick up."
Three of the five seasonally adjusted main diffusion indices displayed contraction. The key indicators of production at 52.3 and new orders at 56.2 remained in expansionary mode.
Employment was 49.6, deliveries of raw materials 49.3 and stocks of finished products 46.9. The latter remained the lowest indicator, with 13 consecutive months in contraction.
While the overall seasonally adjusted result was in expansion, the unadjusted results showed all regions in decline during January. The biggest drop was in the Northern region on 45.8, which had shown the strongest level of regional expansion for the previous two months.
Canterbury and Westland was 49.7, Central was 48.9 and Otago and Southland was 48.8.
