Market conditions tighten for manufacturing
For the second consecutive month output of manufacturers in the top half of the North Island where half the country's
manufacturing takes place, has contracted.
The Employers & Manufacturers Association (Northern) reports the ANZ-Business NZ leading PMI indicator shows manufacturers are
maintaining production levels by stockpiling finished goods.
"The PMI reveals the economy is on the turn," said Bruce Goldsworthy, EMA's Manager of Manufacturing Services.
"Ominously Australia's manufacturers are expanding at the same time as ours are cutting back. Australia's PMI for April
was 54.8; New Zealand's overall 49.3.
"Australia's manufacturing strength in their own market is intensifying the competition for our manufactured exports
there, which are worth $5 billion annually, at the same time as demand locally is slipping.
"The slow down is affecting all sizes of firm with those in the north most affected.
"In New Zealand manufacturing grew output in just one region last month - Canterbury/Westland.
"In the north manufacturers have been shedding staff though new orders have remained positive."