NZ manufacturing activity grows at slowest rate in 5 years in December -BNZ survey

By Kitco News / January 18, 2018 / www.kitco.com / Article Link

WELLINGTON, Jan 19 (Reuters) - Manufacturing activity in New Zealand grew at its slowest pace in five years in December, a survey showed on Friday.

The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index (PMI) fell to 51.2 from 57.7 the previous month.

A reading above 50 indicates an expansion in activity, while anything below that threshold indicates a contraction.

The New Zealand dollar fell to $0.7286 after the release of the survey, from around $0.7305.

The stark slowdown in growth was largely due to a hangover from a turbulent election that saw the new Labour-led government take the helm in October.

The surprise result ended almost a decade of centre-right National rule and generated uncertainty as to what policies the centre-left government would implement, particularly around foreign investment and migration.

"Anecdotal evidence, across the economy, suggests there was a post-election hiccup in activity as businesses put off major spending...until there was greater clarity and, more importantly, understanding of likely policy shifts," said Stephen Topliss, head of research at BNZ Bank.


(Reporting by Charlotte Greenfield; editing by Mark Heinrich)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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