New Zealand’s manufacturing sector remained in a steady state of expansion, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for November was 54.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 1.5 points higher than October, and very similar to expansion levels experienced in both August and September. The sector has now been in continued expansion since October 2012.
BusinessNZ’s executive director for manufacturing Catherine Beard said that the November result continued the positive trend for the sector.
“New orders (57.8) was at its highest level since June, as was employment (53.7). Also, the proportion of positive comments for November (68.6%) was a healthy pick up from both October (61.8%) and September (58.7%). A number of comments centred on seasonal factors at play, although others mentioned good customer demand, both domestically and offshore.
BNZ Senior Economist Doug Steel said the positive signals from the PMI continue. It affirms our thinking that the economy has grown a bit faster in the second half of 2015 than it did in the first half.