Manufacturing stable, new orders promising

26 September 2003

Manufacturing stable, new orders promising

The latest ANZ-Business NZ Performance of Manufacturing Index continues to hover around the 'no change' threshold, although it recorded a slightly higher level of expansion in manufacturing activity across New Zealand in August.

The PMI reading for August was 51.9 (figures above 50 indicate expansion). This was up 0.3 points from July, but down 6.3 points from August 2002. The August 2003 result was consistent with manufacturing conditions being relatively stable for the first eight months of 2003. One positive sign for future activity was the healthy level of expansion for new orders at 56.1, which provides an indicator of the future direction of other component indexes.

Canterbury/Westland rebounded from a slight decline in activity during July to record their highest level of expansion since March at 60.2. Although the Central region recorded a slight decline, other regions showed moderate expansion.

Manufacturers noticed that confidence among customers was mixed, but new orders were still coming through. Skilled staff shortages were still evident, affecting output for some firms, with some orders unable to be completed.

Full results are available on www.anz.co.nz under 'ANZ Spotlight/Economics' and on www.businessnz.org.nz under 'PMI Reports'. For more information or assistance with data interpretation, contact Stephen Summers, ph 04 4966564, ssummers@businessnz.org.nz.

The ANZ-Business NZ PMI (performance of manufacturing index) is sponsored by business banking specialist ANZ Banking Group (NZ) Ltd and draws on the depth of member companies associated with Business NZ: EMA (Northern), EMA (Central), Canterbury Employers' Chamber of Commerce, Canterbury Manufacturers' Association and Otago Southland Employers' Association.

ENDS

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