Further expansion for manufacturing sector

Cashmanager | 8 years ago

Manufacturing recorded a healthy start to the year, as the BNZ - BusinessNZ Performance of Manufacturing Index (PMI) once again recorded some strong readings.

The seasonally-adjusted result for January was 56.2 - any figure above 50 is considered to show an expansion in activity.

This means the sector has now been expanding for 16 months in a row, with the average over the past six months standing at 56.2.

Catherine Beard, executive director for manufacturing at BusinessNZ, explained how the results are especially strong considering they cover the period immediately after Christmas.

"Positive comments from manufacturers revolved around a growing confidence by consumers, further gains in building construction and continued high levels of new orders, both domestically and offshore," she commented.

One of the sectors particularly thriving at the moment is metal products, which is reaping the rewards of the residential construction boom that is likely to continue for some time to come.

Machinery and equipment manufacturing also performed well, while petroleum, coal, chemical and associated product manufacturing dipped significantly from the previous month.

The groups believe this was largely due to the seasonal factors affecting the sector.

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Three of the four regions assessed for the PMI experienced expansion during January, with the only exception being the Otago-Southland area, where results continued to fall from the previous month.

The Northern region, which incorporates the North Island, saw a lower level of expansion after recording three results of 60 or higher on the index.

Meanwhile, the Canterbury/Westland region went back into expansion after a no change level in December and the Central region's results were broadly similar to the previous month.