Christmas orders keep industry busy

By ELLEN READ and NZPA

Manufacturers are in full swing for Christmas with the latest ANZ Performance of Manufacturing Index showing strong activity across all regions, sectors and firm sizes.

Although slightly lower than the October reading (64.6), November's 64.4 was a positive result. Any reading above 50 indicates expansion.

Many many firms are struggling to fit in extra work ahead of Christmas, those with a strong export focus are still concerned about the strong dollar. The kiwi is up over 20 per cent against the US currency this year.

However solid demand from domestic customers in the lead-up to Christmas is holding up activity levels. "This year manufacturers have shown they can manage sharply reduced returns from exports and a rising currency if the home market is performing well," said Bruce Goldsworthy, manufacturing services manager of the Employers and Manufacturers Association (Northern).

He said manufacturers had retained their Australian markets and were demonstrating niche competitiveness on the home front against cheaper imports.

The strong index result follows figures released by Statistics New Zealand this week showing seasonally adjusted manufacturing sales fell 1 per cent in the three months to September 30. With the effect of price changes removed, sales decreased 0.2 per cent.

Manufacturing often picks up in the months before Christmas.

Four out of 15 industries recorded decreases in the quarter. The largest drops were in meat and dairy product manufacturing (7.8 per cent) and other food manufacturing (4.5 per cent).

Against that, paper and paper product manufacturing rose 7.8 per cent and structural, sheet, and fabricated metal product manufacturing increased by 3.3 per cent.