Manufacturing News

NZ’s manufacturing industry continues growth phase

New Zealand’s manufacturing sector expanded for a second month in October as production and orders rose.

The manufacturing index for October was 50.6 compared with 51.5 in September (an index above 50 indicates that manufacturing is expanding). September’s gain was the first since April 2008.

New Zealand’s economy grew for the first time in six quarters in the three months through June, and expansion in manufacturing adds to signs of improving growth in the second half.

The pace of recovery may be curbed by a rising jobless rate and a reluctance of both consumers and businesses to spend.

The index is based on gauges of production, employment, new orders, finished stocks and deliveries.

In October, all the gauges fell from September levels although the new orders and production measures remained above 50.

However, the employment index retreated back into contraction.

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