NZ Manufacturing Update
The start of 2017 had some of us concerned with a PMI of 53.2 back in January but this seems like a distant memory now with the industry seeing another great few months of productivity. The sector is remaining healthy and according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI) both March and April have been very positive with an index of 58.0 and 56.8 respectively (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).
Since the beginning of the year new orders are still leading from the front, with an index reading of 62.4, while production itself is reasonably expansive, at 56.9.
We all know how important it is to encourage and grow the NZ manufacturing business, so it is encouraging when looking at the staffing figures from the previous two months, that April’s PMI index on employment was 53.0. This was about as robust as it was in March (53.5) and so still securely above its long-term average, of 50.5. In the March quarter of 2017 it was up 6.0% on the same quarter a year ago suggesting growth in the marketplace.
With NZ’s manufactured exports making up around 85% of all merchandise exports from this country, it’s vital to see the sector continually growing and moving towards more innovative and specialised goods and services that may earn the country higher export revenues.
Let’s hope 2017 continues to remain positive for the next few quarters.