New Zealand manufacturing activity expanded to its highest level in seven months in September, with an uptick in new orders pointing to further improvements ahead.
The BNZ-BusinessNZ performance of manufacturing index rose to a seasonally adjusted 55.4 last month from 55.1 in August, and was the highest level since February. A reading of 50 separates expansion from contraction.
The sub-sectors of the index showed improvement in production, new orders and deliveries while finished stocks and employment edged lower. Manufacturers noted solid domestic demand, improving conditions in Australia and a generally lower New Zealand dollar as positives, while negatives included dairy industry weakness, higher imported costs and other cost pressures. The manufacturing sector’s activity has been growing for 36 consecutive months.
The NZD continues its rally and trades is traded well above 0,6800.