New Zealand data - Manufacturing PMI for October: 53.5 (prior 55.4)

Business NZ manufacturing Purchasing Managers' Index (PMI) for October

In at a dip to 53.5

• prior 55.0, revised from 55.4

Comments from BNZ Senior Economist Doug Steel on the PMI:

• "it was interesting to see a decline in inventory this month especially in the context of new orders remaining above-average - it's a signal for more production ahead"
• Production continues to expand, albeit at a slower pace in October
• We are not reading too much into the monthly slow down at this point. It is only one month and it follows a couple of stronger months
• Construction outlook remains buoyant. Don't fret over the 5.7% decline in residential building consent numbers for September, following their 5.3% fall in August. These need to be seen in the context of a 20% jump back in July. The trend is upward.