Manufacturing sector slows slightly as fuel prices spike

Résumé détaillé

The manufacturing sector slowed a shade in October as businesses coped with higher fuel prices and uncertainty ahead of the election.

The manufacturing sector slowed a shade in October as businesses coped with higher fuel prices and uncertainty ahead of the election.

The BNZ-Business New Zealand performance of manufacturing index (PMI) eased to 54.9 from 56.3 in September.

A reading above 50 shows the sector was expanding, which it has been doing for the past 16 months.

BNZ senior economist Doug Steel said the continued strength in manufacturing activity showed it was now sustained and established.

"Although the PMI can be volatile month to month, the broader message is clear: momentum in manufacturing is firmly positive."

He said all the sub-indices remained in expansion, with the strongest showing in deliveries, but easing in production, new orders, and employment.

Steel said raw deliveries was close to its highest ever level which was a healthy signal.

"The recent increase in the deliveries of raw materials and stocks subindexes may reflect manufacturers rebuilding inventories."

Among the various manufacturing industries, textile, clothing and footwear sustained its recent improvement, which Steel regarded as positive given its close links to consumer spending.

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