Business NZ manufacturing Purchasing Managers’ Index (PMI) for October, 59.3

  • prior was 58.5, revised up from 58.1

Highest recorded so far for 2014

All five seasonally adjusted main diffusion indices were again in expansion during October:

  • Production (62.5) – highest result since July 2013
  • New orders (61.8)
  • Employment (57.5) – highest ever result since the survey began in 2002
  • Deliveries (56.6) eased from its level of activity in the previous month
  • Finished stocks (51.5) also experienced a lower level of activity from September

BusinessNZ’s executive director for manufacturing Catherine Beard:

  • “While the month of May represented the lowest value recorded for the survey so far in 2014, a run of steady and ongoing increases in activity since then has led to the survey now slightly below the 60 point mark for expansion
  • While all diffusion indices are in expansion, the fact that employment is at its highest ever level since the survey began in 2002, provides another boost in the arm for the sector. In addition, the proportion of positive comments from manufacturers (68.7%) was well up on results from previous months. This all bodes well for a healthy end to 2014.”

BNZ Senior Economist, Doug Steel:

  • “New Zealand’s labour market continues to strengthen with annual employment growth of 3.2% and the unemployment rate falling in the year to September. Today’s PMI results suggest more improvement is likely in the final quarter of 2014.”