Australia drives increase in NZ manufacturing last month

14:27, July 14, 2011      

Email | Print | Subscribe | Comments | Forum 

New Zealand's manufacturing sector saw continued expansion in June, driven by demand from Australia, according to the BNZ-Business New Zealand Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 54.3 (a reading above 50 indicates expansion, and below 50 decline), but it was slightly down on the May result of 54.7, said a statement from Business New Zealand.

Combined they were the strongest two months of manufacturing activity since early 2010.

The figures were released the same as the government statistics agency, Statistics New Zealand, released figures showing the country's GDP in the March quarter was up 0.8 percent, driven by growth in manufacturing.

Business New Zealand executive director for manufacturing Catherine Beard said that part of the relative positive and steady result for the last two months could be attributed to our Australia.

"Many of the positive comments by manufacturers have centered on increased orders and sales from Australia given the competitive exchange rate at present. While issues such as the ongoing effects from earthquakes and the economic downturn are still mentioned, the Australian situation is as least providing a valuable market opportunity for businesses looking to broaden their sales base," said Beard.

BNZ economist Doug Steel said there seemed to have been plenty of reasons for the rate of manufacturing expansion to cool in June, but it failed to.

"This is fundamentally encouraging. Export growth is holding up despite its many threats, including the strength of the currency, and domestic manufacturing sales look likely to strengthen with the wider economic recovery we foresee. All up, this survey gives a sense of sure and steady improvement," said Steel.

Four of the five seasonally adjusted main diffusion indices were in expansion during June, with deliveries (56.1) leading the way, followed by new orders (55.6) and production (52.4). Employment (51.7) saw its second consecutive increase in expansion, while finished stocks (48.4) continued to slip.

  Weekly review  


  • Do you have anything to say?


Special Coverage
  • Premier Wen Jiabao visits Hungary, Britain, Germany
  • From drought to floods
Major headlines
Editor's Pick
  • Aeriosa's aerial dance
  • Kobe Bryant in Manila
  • 2011 ESPY Awards winners
  • North China offshore oilfield resumes operation after spill
  • Children hold rally to support Gaddafi in Tripoli, Libya
  • Brazilian police launch anti-drug operation
Hot Forum Discussion