WELLINGTON, Nov. 13 (Xinhua) -- New Zealand's manufacturing sector continued to expand in October, although businesses reported ongoing pressure from fuel prices, the cost of living and election uncertainty, a monthly survey showed on Friday.
The latest BNZ-BusinessNZ Performance of Manufacturing Index (PMI) showed a seasonally adjusted reading of 54.9 in October, down 1.4 points from September's 56.3 but remaining above the 50-point threshold separating expansion from contraction. The sector has now recorded 16 consecutive months of expansion.
Negative sentiment increased slightly, with 56.4 percent of comments from respondents being negative, compared with 53 percent in September. However, some businesses pointed to the Christmas build-up and steady orders as more positive signs.
BusinessNZ Director of Advocacy Catherine Beard said manufacturing had continued to expand for well over a year, despite a slowdown from September's stronger result.
She said the softening in new orders and production was worth watching, but the Christmas build-up and steady infrastructure work suggested manufacturers were entering the end of the year on a solid footing.
Employment was the weakest sub-index at 51.9, while deliveries and finished stocks recorded the strongest readings, at 61.4 and 58, respectively.
BNZ senior economist Doug Steel said that while the PMI could be volatile month to month, the broader message was that manufacturing momentum remained "firmly positive." ■