Production output, orders, pick up Waikato, BOP

Media statement Monday, July 20, 2009

Production output, new orders, pick up for manufacturers in Waikato, Bay of Plenty

A level of recovery is showing up for manufacturers in the Waikato and Bay of Plenty.

The outturn of the BNZ Capital/Business New Zealand Performance of Manufacturing Index for June (PMI) showed the rate of decline has flattened out, and with a small pick up evident in the regions’ production output and new orders.

“The rate of decline has all but stopped, going from 36.5 in April to 46.8 in June,” said Jack Ninnes, the chair of EMA Waikato. (Below 50 indicates contraction; above 50 expansion)

“Production output recovered to 53.8 with new orders rising to 51.9,” Mr Ninnes said.

“Though the figures are from a low base, they show confidence is strengthening, and with productivity rising strongly.

“Furthermore since stock levels of finished goods and raw materials are being held really tight at 38.5 and 36.5 respectively, there is every prospect of more expansion coming. Employment alone has yet to return to recovery mode.

“The Bay of Plenty/Waikato figure of 46.8 in June compared to the New Zealand wide PMI of46.1, Australia at 38.4; US 42.8, Europe 40.7, Japan 46.6 and China 51.2.

“Our regions are holding well,” Mr Ninnes said.

ENDS

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