WELLINGTON, Dec 16 (Reuters) - New Zealand manufacturing activity expanded for the first time in four months in November, a survey showed on Thursday, giving further evidence the recovery remains patchy and supporting views that rates will stay on hold well into next year.
The Bank of New Zealand-Business NZ's seasonally adjusted performance of manufacturing index (PMI) rose to 52.7 from 50 in October. It was the highest PMI reading since June this year, and comes after the index showed contraction or stagnation for three months.
A reading above 50 shows expansion of activity in the sector.
The survey showed all five of the PMI's sub-indexes expanding for the first time in five months, raising hopes that the sector may be turning a corner.
'Having new orders in expansion, albeit modest expansion, is a good forward indicator of continuing growth,' said BusinessNZ executive director for manufacturing Catherine Beard.
The strongest growth was in the production and deliveries sub-indexes, which both rose to their highest levels since April this year.
Official data showed manufacturing volumes fell 1.4 percent in the third quarter to their lowest level in 10 years, and suggesting the sector might be a drag on economic growth for the three months to Sept 30. See
(Reporting by Gyles Beckford; editing by Balazs Koranyi) Keywords: NEWZEALAND ECONOMY/PMI (Gyles.Beckford@thomsonreuters.com)(+644-471-4231)(Reuters Messaging: gyles.beckford.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The Bank of New Zealand-Business NZ's seasonally adjusted performance of manufacturing index (PMI) rose to 52.7 from 50 in October. It was the highest PMI reading since June this year, and comes after the index showed contraction or stagnation for three months.
A reading above 50 shows expansion of activity in the sector.
The survey showed all five of the PMI's sub-indexes expanding for the first time in five months, raising hopes that the sector may be turning a corner.
'Having new orders in expansion, albeit modest expansion, is a good forward indicator of continuing growth,' said BusinessNZ executive director for manufacturing Catherine Beard.
The strongest growth was in the production and deliveries sub-indexes, which both rose to their highest levels since April this year.
Official data showed manufacturing volumes fell 1.4 percent in the third quarter to their lowest level in 10 years, and suggesting the sector might be a drag on economic growth for the three months to Sept 30. See
(Reporting by Gyles Beckford; editing by Balazs Koranyi) Keywords: NEWZEALAND ECONOMY/PMI (Gyles.Beckford@thomsonreuters.com)(+644-471-4231)(Reuters Messaging: gyles.beckford.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.