New Zealand manufacturing expanded during October as the sector continued on a strong run, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
As stuff.co.nz reports the result means that New Zealand’s manufacturing sector has now expanded for 11 consecutive months.
The seasonally adjusted PMI for October was 55.7 and the PMI has averaged 56.0 since the start of 2013. (A figure greater than 50 corresponds with an increase in activity, while a PMI under 50 indicates a contraction in the industry).
In addition, October’s PMI was the highest October result since 2007.
Commenting on the result, BusinessNZ’s executive director for manufacturing Catherine Beard said, “Given Christmas is fast approaching, positive results for the last two months of 2013 would mean it would be the first calendar year in which all 12 months are in positive territory since 2007. While one should never count their chickens, the overall sentiment of the business community and level of consumer confidence displayed in other surveys at present show that the country is on track for on-going growth for some time.”
All five seasonally adjusted main diffusion indices again expanded in October. The highest result was for new orders which returned a result of 60.4. Production came in at 57.2 and deliveries of raw materials recorded 55.1. Finished stocks recorded 51.2, while employment (52.1) returned to expansion after a decline in activity the previous month.
Expansion was greatest around the top of the North Island and the bottom of the South Island.
In the North Island, the Northern region (60.7) recorded its highest level of activity since November 2010. However, the Central region (53.6) dropped 4.9 points from September.
In the South Island, the Canterbury/Westland region (52.5) recovered from the September result, while the Otago-Southland region (58.0) returned to similar levels of activity seen in August.