Photo: RNZ
- Manufacturing activity expands marginally in November
- Four of five sub-indexes in expansion - employment first since April
- Manufacturing expands five months in a row
- Points to broader economic recovery
The manufacturing sector expanded for a fifth consecutive month in November, led by rising production and employment.
The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) for October rose by 0.2 points to 51.4 from 51.2 in October, but is still below its long-run average of 52.4. A reading above 50.0 indicates expansion.
The sector has been gradually recovering from the mid-year slump when the economy stalled.
BNZ senior economist Doug Steel said the PMI has settled into growth territory, but he is hoping for bigger improvements in the months ahead.
"We want to see more upbeat out turns from this survey and the Performance of Services Index, to provide us with some comfort that the expected lift in Q3 GDP can be sustained into Q4."
Steel said manufacturing was struggling to gain momentum, and its current activity was nothing to get excited about.
However, the survey attracted fewer negative comments from manufacturers, with the proportion of negative comments falling to 45.6 percent, down from 54.1 percent in October and 60.2 percent in September.
BusinessNZ's director of advocacy Catherine Beard said in the current economic climate, any move higher was a welcome step.
"Manufacturers reported a lift in demand driven by seasonal Christmas activity, improving economic conditions and rising customer confidence."
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