RSS   Newsletter   Contact   Advertise with us

Manufacturing shows signs of slowing growth in New Zealand

Staff writer ▼ | July 10, 2014
New Zealand's elevated dollar could pose problems for manufacturers, analysts said after the latest performance of manufacturing index (PMI) showed a fall in new orders.
New Zealand manufacturing
New Zealand manufacturingNew Zealand's elevated dollar could pose problems for manufacturers, analysts said after the latest performance of manufacturing index (PMI) showed a fall in new orders.


The BNZ-Business New Zealand PMI for June was 53.3, up 0.7 points from May, on a scale where above 50 indicates expansion and below 50 contraction.

The PMI showed manufacturing had been in expansion for 21 consecutive months, but the new orders sub-index was down 0.4 points to 50.9.

Business New Zealand executive director for manufacturing Catherine Beard warned of "a few head winds" for manufacturers. "Overall production levels remain healthy and have been very consistent for the last three months. Employment levels continue to show more people entering the sector."

BNZ senior economist Craig Ebert said the latest quarterly survey of business opinion, published Tuesday, also pointed to " clear hints of moderation," although no signs of economic stalling, and the PMI "weak spot" seemed to be in new orders.

The other four sub-indices were mostly in expansion in June, with production on 55.9, employment on 52.9 and deliveries on 55.1, while finished stocks fell 2.6 points to 49.7.


 

MORE INSIDE POST