Manufacturing index back in positive territory
Photo:
RNZ
The manufacturing sector has picked up again, with all economic indicators in expansion.
July's BNZ-BusinessNZ Performance of Manufacturing Index (PMI) rose 3.6 points to a seasonally adjusted 52.8 points, just above the long-term average.
A reading above 50 indicates manufacturing was generally expanding, while under 50 indicated a decline.
Production, employment, new orders, finished stocks and deliveries were all in expansion.
"[The PMI] will need to be sustained or nudge a bit higher to be consistent with our economic forecasts, but it is good to see a move for the better," BNZ senior economist Doug Steel said.
He said manufacturers were still facing an increase in United States tariffs, which were
set at 15 percent for New Zealand
, compared with 10 percent for Australia.
Manufacturers were also navigating
higher gas prices
, up nearly 21 percent in the first quarter over the year earlier.
"Given the prevailing headwinds it is, perhaps, even more encouraging that the PMI has moved back into expansion," he said.
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