Activity in New Zealand's manufacturing sector rose last month to its highest level in a decade.
The BNZ-Business NZ performance of manufacturing index rose to a seasonally adjusted 57.7 last month, the highest reading for a December month since 2004, and up 2.1 points from November's 55.2 reading. Meanwhile, the annual average reading was 56, unchanged from a year earlier. The index, where a reading above 50 indicates growing activity, has been in expansion for the past 27 months.
Manufacturing activity remained above the key 50 level in four of the five sub-indices, with only employment recording a contraction of a seasonally adjusted 49.4. New orders recorded the highest reading at a seasonally adjusted 62, while production was at 61.7. Deliveries rose for the second consecutive month to 58.7, while finished stocks fell to its lowest level since August of 50.4.
Three of four regions reported expansions, with the Central region posting its first contraction since August of 49.3. Meanwhile, Otago-Southland rose to 66, Canterbury/Westland recorded 60 and the Northern region fell to 56.9 from its 62 reading in November.
Manufacturing across the sub-groups was mixed. Petroleum, coal, chemical and associated product manufacturing dropped to 52.5, while metal product manufacturing slipped to 54.7. Food, beverage and tobacco manufacturing rose to 69.4, which BNZ attributed to the Christmas season. Machinery and equipment rose to 56.6.
