- Catherine Beard, Business NZ's executive director for manufacturing
New Zealand's manufacturing sector continued to grow for the 30th month in a row in March. The Business New Zealand Performance of Manufacturing Index slid slightly to 54.5 in March from a revised 56.1 in the preceding month. A reading above the 50-mark threshold indicates an expansion in the sector. The gauge was last seen in contraction more than two years ago. Of the five diffusion indexes that constitute the headline reading, only production climbed to 55.1 from 52.6. Employment, however, slid to 49.5 from 52.3, the second time in four months it has declined, while new orders fell to 57.4 from 61.4. Finished stocks declined to 53 from 54.2 and deliveries dropped to 54.9 from 58.
The sustained growth in New Zealand's factory sector is yet another sign that the nation's economy is on a solid footing, supported by robust construction activity and record immigration levels. In addition to that, the latest Quarterly Survey of Business Opinion conducted by the New Zealand Institute of Economic Research showed confidence in manufacturing rose, building intentions reached the highest level ever, and plant and machinery intentions hit their highest level since September 1994. As long as confidence levels remain high, companies will be willing to hire and invest, which bodes well for the rest of the economy.
© Dukascopy Bank SA