Manufacturing growth and optimism leading recovery
July 12th, 2010July 15 (BusinessDesk) – Manufacturing activity expanded in June, and optimism in the sector indicates that continuing growth can be expected as the New Zealand economy rebalances towards production and saving.
Last month, the BNZ-Business NZ performance of manufacturing index picked up 2.2 points to 56.2from May to remain firmly entrenched in expansion mode for the tenth consecutive month. A PMI reading above 50 indicates manufacturing activity is expanding, while below 50 indicates it is contracting. Manufacturing is displaying more than twice the pace of growth in the economy overall, according to BNZ economist Doug Steel.
“Of course, manufacturing, both at home and globally, was hit very hard by recession as big ticket durable purchases were delayed or cancelled by consumers and businesses alike,” Steel said. “So t
