New Zealand Composite PMI Slips to 3-Month Low

The BusinessNZ Performance of Composite Index fell to 50.5 in February 2026 from a downwardly revised 52.3 in the previous month, marking the lowest reading since last November. The slowdown came as the services sector contracted for the first time in three months, even as manufacturing activity remained relatively robust. Growth in output, new orders, and employment all eased to their weakest pace since November, indicating softer overall momentum. Meanwhile, inventories declined after rising over the prior two months, suggesting some firms drew down stock levels. Supplier delivery times continued to lengthen, though at a slower pace, pointing to a slight easing in supply-chain delays.

The seasonally adjusted BusinessNZ Performance of Composite Index fell to 52.5 in January 2026 from a more than three-year high of 53.9 in the previous month. Manufacturing output remained strong amid a slight slowdown in the service sector. Output, new orders, and employment all stayed solid despite softening. Also, inventories rose at a milder pace and delivery times shortened slightly.

New Zealand’s seasonally adjusted BusinessNZ Performance of Composite Index rose to 53.7 in December 2025 from 48.8 in November, marking a return to expansion. The services sector strengthened the most in six months, supported by seasonal Christmas and summer demand, improving consumer confidence driven by lower interest rates, stronger tourism, new contracts and bookings, and early signs of broader economic recovery and investment activity. In contrast, manufacturing activity expanded for a fifth straight month. Total output expanded, while employment remained soft. Meanwhile, new orders continued to grow and supplier delivery times improved slightly but remained below the breakeven level.