Economic Update for NZ Manufacturing
New Zealand’s manufactured exports make up around 85% of all merchandise exports from this country.
The manufacturing sector in NZ has once again shown a strong growth pattern for the start of 2016. According to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI) the figure for January reached 57.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.9 points up from December, and the highest level of expansion since October 2014. The sector has now been in continued expansion since October 2012.
BusinessNZ’s executive director for manufacturing Catherine Beard said that the January result has started the new year off to a healthy start, with the key indicators of production (60.3) and new orders (59.8) showing strong growth. “Over two-thirds of manufacturers provided positive comments regarding their main influence on business activity, with increased sales both on a domestic and international basis. Other comments outlined the general positive sentiment occurring in the New Zealand economy.”
There is also is an indication that the manufacturing industry is steadily moving towards more innovative and specialised goods and services. Some of these specialized services earn higher export revenues and are becoming very important for the overall NZ economy.
“Over the last couple of months our business has certainly seen an increase in orders, and we are delighted to hear customers talk of a good start to the year. We’re proud to play our part in a strong NZ manufacturing sector”
Sam Fulton, Sales and Marketing Director