Waikato manufacturers’ retrenchment accelerates

Media statement                      Thursday, October 16th, 2008

Waikato, BoP manufacturers’ retrenchment accelerates

The Performance of Manufacturing Index for Waikato and Bay of Plenty manufacturers slid further below the 49.9 figure struck in August down to 42.8 last month.

EMA Waikato, the Employers & Manufacturers Association in Waikato, reported that the latest Bank of New Zealand/Business NZ PMI signaled gloomier times ahead.

“Every point below 50 on the PMI indicates further weakening in the sector,” said Jack Ninnes, Chairman of EMA Waikato

“The PMI’s rapid fall in September reflected further softening in consumer demand in New Zealand and weak demand conditions globally.

“What’s worse is that the index for New Orders skidded down from 50.0 in August to 37.1 in September while stocks of finished goods blew out to 68.6.

“It’s clear the weak level of activity is likely to persist.

“Employment levels also fell on the PMI to 41.4; the only bright thing about that is several employers report that good staff are new becoming available.”

ends

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