Manufacturers still busy but output is easing

Manufacturing activity continued to ease in January but was still in expansionary mode, the latest ANZ-Business NZ Performance of Manufacturing Index (PMI) shows.

The PMI value of 52.6 for January fell from 58.1 in December and 65.9 in November.

A reading above 50 points indicates expansion, while below 50 indicates decline.

ANZ said expansion typically fell at the beginning of the year and this January was the strongest of the three January months surveyed since the PMI began.

New orders (56.2) continued to lead the main sub-index values.

Employment had the next-highest level of expansion (52.4), followed by finished stocks (51.5). Raw materials (50.9) and production (49.8) were largely unchanged.

A four-month period of expansion for all regions came to an end in January, with Canterbury experiencing a slight decline (49.4).

Otago/Southland (54.9) and Northern (53.8) regions recorded similar expansion levels, while the Central region reached its lowest level since the previous January.

ANZ said a number of firms mentioned the typical fall-off in activity after Christmas-New Year, but said orders were still coming through at a steady pace. The high value of the New Zealand dollar remained a concern.

- NZPA