New Zealand’s manufacturing sector experienced a pick-up in expansion during September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for September was 54.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up 3.0 points from August.
BusinessNZ’s executive director for manufacturing Catherine Beard said that given what happened post the nationwide COVID lockdown, a boost in activity post the Auckland lockdown was not a surprise.
“September saw Auckland at level 2.5 or lower, which meant back to business for most manufacturers. This saw the unadjusted regional activity level for the Northern region recovering from 41.2 in August to 50.6 in September”.
“All but one of the key sub-indices improved in September, including Employment (51.6), which showed expansion for the first time since February”.
BNZ Senior Economist, Doug Steel said that “although the September PMI pushed above its long-term average of 53.0, it should not be confused with above average activity levels. Rather, it indicates growth off the low base set earlier in the year. Growth has not yet been enough to recoup previous loses, but some progress is being made”.
