NZ still stands out on the economic stage
We always like to follow what is happening on the world stage when it comes to manufacturing and our PMI (Performance of Manufacturing Index). Since 2012 NZ manufacturing has been in continued expansion and although we saw a slower rate of expansion in March, according to the latest BNZ – BusinessNZ PMI of 54.7 it is still well above the 50.0 mark (which indicates a declining market).
BusinessNZ’s executive director for manufacturing Catherine Beard said that the dip in expansion for March was across all the sub-indices, with employment in slight contraction for the second month running.
On a three month average basis, NZ’s PMI still stands head and shoulders above similar indicators from major economies around the world. Until last month, NZ’s PMI has consistently out-paced Australia’s for several years. However, the 3.4 index point gap in March is the largest in Australia’s favour since mid-2010. Analysts say that this is not necessarily a bad thing.
Sam Fulton at Fero tends to agree and believes that this might well be a good thing for NZ if it indicates positive growth in the Australian economy as a whole.
He believes “There are many benefits from trans-Tasman trade for both countries. A growing Australian market offers many opportunities for NZ companies and solves a lot of problems for Australian businesses. We would love to see more customers from Australia in the near future”.