New Zealand’s manufacturing sector saw activity increase further in March, with new orders leading the way, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for March was 57.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2.1 points higher than February, and the highest level of expansion since January 2016. Overall, the sector has remained in expansion in almost all months since October 2012.
BusinessNZ’s executive director for manufacturing Catherine Beard said that it was pleasing to see the sector pick up across all sub-indices.
“The key sub-indices of production (60.4) and new orders (64.3) were both above the 60 point mark for the first time since September 2016, with the latter at its highest level of expansion since June 2004”.
“In addition, the pick-up in overall activity was mirrored by a corresponding lift in the proportion of positive comments, rising from 61.7% in February to 67.2% in March”.
BNZ Senior Economist, Craig Ebert, said that “while the recent rebound has been in all the right places, it’s new orders that have stood out head and shoulders. This is a good sign that production will sustain its strong momentum”.
