New Zealand's manufacturing sector recorded its highest level of activity in almost two years and a record for the month of, led by metal production and machinery.
The BNZ-BusinessNZ Performance of Services Index rose 6.9 points to 57.7 in February from a month earlier, with four of the five of
the sub-indexes expanding. The expansion was led by new orders rising to 63.1 and production on 61.9, both at their highest level since 2004. Deliveries increased to 3.8 points to 54, the highest since August 2011.
Employment was little changed on 51.3 as was finished stocks on 49. A reading of 50 separates a contraction from an expansion.
"We think a production bounce back has occurred in the first quarter of 2012," said Doug Steel, economist at Bank of New Zealand, describing the February reading as a "stunning" result.
"The PMI has only printed better that today on two occasions in the past seven years - it is one out of the box," Steel said. "We are already seeing signs of a construction pick up in the leading indicators."
