New Zealand Business NZ manufacturing PMI dropped to 53.4 in February, down from 54.4.
Sub-indices:-
- Production up 0.4 to 53.9
- Employment up 3.3 to 54.8
- New orders up 5.1 to 54.8
- Deliveries up 2.9 to 52.7
- Finished stocks down -1 to 51.1
Comments from Bank of New Zealand economist Doug Steel:-
- “The generally slower PMI suggests we shouldn’t expect Q1 manufacturing GDP to be much different from the flat result recorded in yesterday’s official figures for Q4,”
- “Early livestock culling on account of adverse weather seemed to boost Q4 manufacturing activity but will have the opposite effect through early 2018 given New Year rains.”
- “It all suggests primary processing will be a drag on manufacturing activity early in 2018,”
Comments from Business NZ manufacturing executive director Catherine Beard:-
- Pace of expansion had levelled off in recent months
- “noted the sluggish start to the year with a dip in new orders being a common message.”
Sharp fall in NZD/JPY this week suggests that rebound from 75.92 has completed at 78.61. The cross was held by 55 day EMA slightly below 50% retracement of 81.55 to 75.92. For the near term, it’s going to revisit key support level around 75.65/75.92. It remains to be seen if there is enough selling to push through this key support zone. But outlook is not looking good.
