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2019.11.1502:13:00UTC+00New Zealand Manufacturing Expands For First Time In 4 Months

New Zealand manufacturing sector returned to positive territory for the first time in four months in October, survey data from the BusinessNZ showed Friday.

The Performance of Manufacturing Index rose to 52.6 in October from 48.8 in the previous month.

This was the highest reading since last April. A score above 50 indicates expansion in the sector.

The new orders index advanced to 56.2, which continued its recovery to record its highest value since May 2018. Likewise, the production sub-index climbed to 52.6 to produce its highest result since February 2019.

The employment indicator rose marginally to 50.2 in October. At 48.5, the indicator for finished goods was the only sub-index to remain below 50.

"After a five month period of both lacklustre and negative growth, the pick-up in both new orders and production put the sector back on track," BusinessNZ's executive director for manufacturing Catherine Beard said.

"If the remaining two months for 2019 are to keep up the momentum, it is important these key sub-indexes remain positive to finish the year on a more upbeat note," Beard added.

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