Manufacturing tracking up

Overall activity in Otago and Southland’s manufacturing sector continued to expand in May, the latest Performance of Manufacturing Index shows.

Last month’s PMI reading of 60 points is up from April’s 57.7; a reading above 50 indicates the sector is generally expanding, below 50 that it is declining.

Otago and Southland’s May PMI reading sat above the national one of 58.6.

It was pleasing to see the past three months’ expansion had continued, Otago Southland Employers’ Association chief executive Virginia Nicholls said.

In the regional breakdown by categories, employment levels, new orders and production levels were sitting above 60, while deliveries of raw materials were just above 50; stocks of finished products were below 50.

Mrs Nicholls said shipping and logistics problems were affecting nearly every exporter and importer, which was adding significant price increases for freight; containers were difficult to access and as a result materials were often arriving late.

Other factors affecting the manufacturing sector were a global shortage of microchips, electricity pricing and continuing issues accessing skilled labour.

 

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