Source: Radio New Zealand
A reading above 50.0 indicates expansion in the BNZ-Business New Zealand PMI, in October the score rose by 1.3 points to 51.4. 123rf
- Manufacturing activity expands, rises 1.3 points to 51.4 – above 50 is expansion
- Four of five sub-indexes also in expansion – employment still contracting
- Manufacturing expanded four months in a row, first time in three years
New Zealand’s manufacturing sector expanded for a fourth consecutive month in October, led by a rise in new orders and improved demand.
The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) for October rose by 1.3 points to 51.4 from 50.1 in September.
A reading above 50.0 indicates expansion.
BNZ senior economist Doug Steel said the lift to 51.4 from September’s 50.1 was not large, but was moving in the right direction.
“The October result sees the PMI now boasting four consecutive months above the break even 50 mark for the first time in three years.”
BusinessNZ director of advocacy Catherine Beard said that after two months of flatlining activity in the sector, at least October showed more signs of life.
“Four of the five sub-index values were in expansion during October, lead by New Orders, which showed its highest level of expansion since August 2022.”
Production and Finished Stocks also rose, but Employment remains in contractionary territory at 48.1.
Steel said manufacturers were still shedding workers and employment was usually the last sector to rise in an economic recovery.
Manufacturers were also less negative above the future, the proportion of negative comments fell in October to 54.1 percent, down from 60.2 percent in September and 58.1 percent in August.
Manufacturers reported a lift in orders and improved demand, helped by seasonal activity, new customers/products, and signs of economic confidence returning.
Many also noted better efficiency and productivity, with process improvements and automation supporting stronger sales and output.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
