Manufacturing conditions remain steady
Manufacturing showed moderate expansion in February, according to the latest ANZ-Business NZ Performance of
Manufacturing Index (PMI).
The New Zealand PMI for February was 53.0, up 1.4 points from January. This follows a decline in the PMI during December
and January, and is consistent with a seasonal decline in manufacturing activity over the Christmas period. All
component indexes showed expansion, led by the production sub-index, which stood at 55.1 (up 2.1 points from January).
The PMI (Performance of Manufacturing Index) surveys manufacturing activity in a format that allows for comparisons with
other manufacturing nations. A PMI reading above 50 points indicates expansion and below 50 indicates decline. The
distance from 50 is indicative of the strength of the expansion or decline.
The February survey reported manufacturers' concerns about the high NZ dollar, the drought in Australia (a country which
accounts for over one-third of New Zealand's basic manufacturing sector exports), and high, volatile electricity prices.