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NZ Business PMI shows solid expansion in Dec 2014

FXStreet (Bali) - New Zealand Business NZ PMI for December 2014 rose from previous 55.2 to 57.7. A positive outcome for the economy, which still shows solid expansion.

Highlights

"The BNZ-BusinessNZ seasonally adjusted PMI for December stood at 57.7, which was 2.1 points higher than the previous month, and still showing solid expansion. The PMI averaged 56.0 for 2014, which was exactly the same as 2013. The sector has now been in expansion for 27 consecutive months."

"Despite the pick-up in expansion, four of the five seasonally adjusted main diffusion indices were in expansion during December. New orders and production (62.0 and 61.7 respectively) led the way during the last month of 2014, with both returning to post-60 point values. Deliveries (58.7) rose for the second consecutive month, while finished stocks (50.4) dropped to its lowest value since August. Employment (49.4) was in slight decline, ending a 14 month expansion streak."

"Three of the four regions were in expansion during December, with mixed results across the country. In the North Island, the Northern region (56.9) fell back from 62.0 in November, while the Central region (49.3) experienced contraction for the first time since August. In the South Island, the Canterbury/Westland region (60.0) experienced its third consecutive 60+ point value, while the Otago-Southland region (66.0) built on its November result."

"Manufacturing by industry sub-groups were mostly positive during December. Food, beverage & tobacco manufacturing (69.4) remained strong given the time of year, while machinery & equipment manufacturing (56.6) continued to show healthy levels of activity. Metal product manufacturing (54.7) dipped slightly from November in terms of expansion levels, while petroleum, coal, chemical & associated product manufacturing (52.5) also experienced a drop."

"The proportion of positive comments for December (64.3%) was up on November (61.4%), but still lower than October’s (68.7%). Globally, the JPMorgan Global Manufacturing PMI stood at 51.6 for December, which was its lowest result since August 2013."

Author

Ivan Delgado

Ivan Delgado

Independent Analyst

Established in the Asian continent since 2009, Ivan studied a degree in Business at the University Pompeu Fabra (Barcelona), while also earning a postgraduate degree in Business Administration.

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