Manufacturing keeps growing in June

Photo / Dean Purcell

Activity in the manufacturing sector was up again in June, according to the latest BNZ-BusinessNZ Performance of Manufacturing Index (PMI)

The seasonally adjusted PMI for June stood at 56.2, which was up 2.2 points from the month before.

If the PMI is above 50, then manufacturing is expanding, if below that then it is declining.

The June figure was the tenth consecutive month of expansion, and the second highest result for that month since the survey started in 2002.

BusinessNZ's executive director for manufacturing Catherine Beard said that the results showed "a continuing solid performance from the New Zealand manufacturing sector."

"The continued expansion in the manufacturing sector for the tenth consecutive month shows a slow and steady path to recovery, and the sentiment from manufacturers could best be described as cautious optimism," said Beard.

"While all the indices are continuing to head in the right direction it has been a slow and steady climb back from the depths of the recession and for many the improvement has been a bit up and down."

Beard said she expected manufacturers would take on permanent staff where they were critical to plant operations and where there was sufficient growth.

They would be "keen to supplement that with contractors so they have some flexibility."

"While we continue to head in the right direction, the recovery of the sector has been a bit slower than some would have expected coming out of a recession. This probably reflects the worldwide nature of the global financial crisis injecting significant caution across a range of sectors," she said.

- HERALD ONLINE