15-month high for NZ manufacturing
A strong domestic economy in New Zealand has led to manufacturing activity reaching a 15-month high, increasing for a fifth month in succession. The BNZ-Business NZ performance of manufacturing index rose 0.8 points to a seasonally adjusted 59.3 in October from September, reaching the highest level since July 2013.
Across all four of the country’s regions, manufacturing activity has remained above the key 50 expansion level in all five subindices in October.
Growth in the New Zealand economy is supported by strong migration-fuelled population growth and is evident in data showing increasing electronic card spending and rising non-residential construction activity, the BNZ said.
“Domestic demand indicators provide a positive backdrop for manufacturing,” BNZ Senior Economist Doug Steel said in a note.
“Confidence and activity indicators remain upbeat. On the downside, an anticipated marked drop in dairy sector revenue is expected to be a headwind.”
Across the regions, Otago-Southland posted the highest activity at 70.6, followed by Canterbury/Westland at 61.6, Northern at 60.2 and Central on 56.6.
Food, beverage and tobacco manufacturing showed the strongest expansion at 74, followed by machinery and equipment manufacturing at 62.2 and textile, clothing, footwear and leather manufacturing at 60.7.
Petroleum, coal, chemical and associated product manufacturing was at 58.8 and metal product manufacturing at 58.3.
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