Manufacturing activity in New Zealand continued to push forward with another healthy month of expansion in August, BusinessNZ executive director Catherine Beard said yesterday.
Releasing the BNZ-BusinessNZ performance in manufacturing index, Ms Beard said comments from manufacturers showed a healthy and stable environment for growth.
''Those providing positive comments continue to focus on opportunities relating to orders and sales. At a domestic level, many of those involved in the building and construction sectors are seeing strong demand for their products. But equally, various offshore customers are providing a steady stream of orders for New Zealand goods.
The New Zealand index reading was 57.5 points in August. Central had the highest regional rating at 61.9, followed by Otago-Southland at 58.8, Canterbury-Westland on 56.7 and Northern on 53.8. Anything above 50 indicates an expansion and the higher the number the larger the expansion.
Otago-Southland Employers Association chief executive John Scandrett said the regional index outcome showed continuing strength across most food and beverage activities, around metal products manufacturing and within the specialist boat building sub-sector.
Respondents cited positive seasonal-based rationale for the continuing expansionary lift and also, in selected cases, bringing forward good news on domestic market buoyancy.
In July, high levels of product deliveries was seen alongside some wind-back on new orders. Those factors presented the chance of a dip in market conditions in August, he said.
''This appears not to be the case, since the August deliveries have also remained within a positive range and, perhaps more importantly, the August finished stock levels are strong, indicating operators are anticipating continuing market growth.''
On the negative side, wood and paper operators seemed to be experiencing some problems around seasonal market demand slippage and, where export activity was involved, against ongoing currency challenges, Mr Scandrett said.
BNZ economist Doug Steel said the New Zealand index results were important, as they suggested the trend in manufacturing activity remained positive following a tough second quarter.
The index average in July and August was the highest two-month average reading in more than nine years.
''It bodes well for a bounce in manufacturing following the disappointing second-quarter results,'' he said.
