Skip to content

Auckland, Southland report sharp falls in manufacturing activity

Auckland, Southland report sharp falls in manufacturing activity

Navigation for News Categories

Manufacturing activity has slowed over August as the resurgence in Covid-19 and restrictions stoked caution in the sector.

no caption

Photo: 123rf

The BNZ Business New Zealand Performance of Manufacturing Index (PMI) fell more than 8 points in July to 50.7, just in expansion territory.

BNZ senior economist Doug Steel called the August result commendable but said the threat of future lockdowns was putting firms off hiring.

“[The PMI] has fallen back heaps from where it was in July and I guess this just reflects the movement in the alert levels around Covid-19 with Auckland going into alert level 3.”

The employment sub-index gained 2 points to 49, but has been in contraction for six months in a row, pointing to jobs being shed.

“Even if we are at the moment seeing quite good new orders, which is the positive aspect of the survey, businesses are just not confident enough to take on more staff and indeed the index still below 50 with respect to employment suggests that job losses are continuing,” Steel said.

Production, new orders and finished stocks increased during August, but deliveries fell by about 11 points to 47.2.

There was strong growth in manufacturing activity in the central and Canterbury region for the month, however, Auckland and Southland reported sharp falls.

Steel said the data was prone to big swings from month to month as a result of the pandemic.

The latest BNZ-Seek job numbers were also released show listings fell by 3 percent in August, and are down by nearly a third on a year ago.

Get the RNZ app

for ad-free news and current affairs
Download from Apple App StoreDownload from Google Play Store

XL subscribe to our newsletter banner

Get the latest news and advice on COVID-19, direct from the experts in your inbox. Join hundreds of thousands who trust experts by subscribing to our newsletter.

Send your news and stories to us or and WhatsApp: +447747873668.

Before you go...

Democratic norms are being stress-tested all over the world, and the past few years have thrown up all kinds of questions we didn't know needed clarifying – how long is too long for a parliamentary prorogation? How far should politicians be allowed to intervene in court cases? To monitor these issues as closely as we have in the past we need your support, so please consider donating to The Climax News Room.

Privacy Policy Designed using Unos Premium. Powered by WordPress.