New Zealand manufacturing activity increased in June, snapping three months of decline, as a weaker dollar supported exporters in the sector.
The BNZ-BusinessNZ performance of manufacturing index rose to a seasonally adjusted 55.2, the highest level since February, and up from 52 in May. All components were in expansion and had readings above 50.
The performance of manufacturing index has been in expansion for 33 consecutive months. Activity in the manufacturing sector was supported by the decline in the kiwi dollar, which has fallen to a five-year low against the greenback, by increasing the value of export receipts as New Zealand's economic outlook cools on the back of weaker global dairy prices.
Production returned to expansion last month with an index reading of 55.7 from April's 49.1 level. Employment rose to 54.2 from 51.7, new orders climbed to 58 from 52.3 and deliveries increased to 55.1 from 52.7. Finished stocks was the only measure to show a decline, slipping to 51.2 from 55 in April.
