NZ Survey of Manufacturing: Higher prices, soft activity - ANZ

Dhwani Mehta FXStreet

In the view of the analysts at Australia and New Zealand Banking Group (ANZ), the fall in New Zealand’s Manufacturing gauge is broadly in line with the expectation for Q3 GDP of 0.4% q/q.

Key Quotes:

“Total manufacturing sales volumes fell 0.3% q/q in Q3 (seasonally adjusted), following a 2.7% fall in Q2. Of the 13 manufacturing industries, seven experienced a contraction from last quarter (meat and dairy; seafood processing; beverage and tobacco; textile, leather, clothing, and footwear; petroleum and coal products; chemical, polymer, and rubber; non-metallic mineral products manufacturing).

Looking forward, the October rebound in the BNZ-BusinessNZ PMI (back into expansionary territory) tentatively suggests core manufacturing activity will pick up in Q4. But the PMI can be volatile on a m/m basis so this week’s read for November (out Friday 10:30am) will be watched closely.

Broadly speaking, we think the slowdown in economic momentum is close to bottoming out, and that growth will gradually accelerate from H2 next year. Core manufacturing is expected to follow suit.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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