New Zealand’s November Manufacturing Activity Grows

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By Esther Tanquintic-Misa | December 13, 2013 12:46 PM EST

Growth in New Zealand's manufacturing sector continued to expand for the 14th consecutive month in November.

Seasonally adjusted PMI figures released by the BNZ-BusinessNZ showed manufacturing activity in the country jumped 1.8 points to 56.7 in November from 55.9 in October.

A year ago it was 50.2. A reading of more than 50 translates to expansion.

An employee works in a fridge manufacturing company in the capital Harare, November 14, 2013. Across Zimbabwe, dozens of factories lie idle with peeling paint, rusting machines and broken roofs in once bustling industrial districts, symbols of the huge economic challenge facing President Robert Mugabe and his ZANU-PF party. From Harare in the north to the second city of Bulawayo in the south, companies are working at a third of capacity, down from 55 percent a year ago, according to the Confederation of Zimbabwe Industries (CZI). Picture taken November 14, 2013. To match ZIMBABWE-ECONOMY/ REUTERS/Philimon Bulawayo

A growth in the new orders sub-index as well as an increase in production spurred the November 2013 expansion, respectively at 62.0 and 59. The jump in the new orders sub-index was the highest since 2004.

BNZ-BusinessNZ likewise noted growths in employment, finished stocks and deliveries.

Craig Ebert, Bank of New Zealand senior economist, forecasts the positive momentum to trail onwards.

"We're certainly looking for manufacturing activity to log a strong expansion over the second half of 2013 after a June quarter that was knocked by the lagged effects of the early-2013 drought," Mr Ebert said in a statement.

For 14 successive months now, New Zealand's manufacturing sector has been on a roll, with PMI averaging 56 so far, definitely better over 2012's 50.9 average.

Moreover, expansion was seen happening in all the manufacturing sub sectors across the entire country. It indicates a massive and broad activity, Mr Ebert said.

The Northern region recorded its highest level of activity since November 2009, while the Central region posted its highest level of activity since November 2002.The Canterbury/Westland region continued its onwards momentum, while the Otago-Southland region showed a similar result to the same time last year.

The New Zealand dollar has yet to react to the positive November manufacturing activity data. It recently traded at US$82.48.

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