New Zealand manufacturing grew at the fastest pace in eight months in January, with the strongest growth in Canterbury/Westland probably reflecting demand for building materials, but employment in the sector is shrinking.
The BNZ-Business New Zealand Performance of Manufacturing Index climbed 4.8 points to 55.2 last month, the
highest since May last year and the highest for the month of January since 2007.
The survey showed the strongest sector within manufacturing was in non-metallic mineral products, which stood at 77.5 and probably reflected demand for concrete, especially for the Christchurch rebuild, said Bank of New Zealand economist Doug Steel.
"Over the coming years we anticipate the positive flow-on effects of a stronger construction sector, and not only in Canterbury, to broaden to other parts of the manufacturing sector," Steel said.
Production was the strongest of the five seasonally adjusted diffusion indexes within the PMI, with a reading of 57.7 last month, the survey shows. On the PMI scale, a reading of 50 separates contraction from expansion.
