New Zealand Manufacturing PMI Falls to 4-Month Low

The BusinessNZ Performance of Manufacturing Index in New Zealand was 53.2 in March, down from a downwardly revised 54.8 in February, marking the softest expansion since last November, but still above the long-term average of 52.5. The latest result showed the sector expanding at a slower pace, highlighting that the Iran war weighed heavily on the index. Four of the five sub-indexes were in expansion, led by new orders, despite a downturn compared to the previous month at 55.8 (vs 57.2 in February), followed by finished stocks (54.0 vs 51.3), production (53.8 vs 56.3), and employment (51.4 vs 50.3), while deliveries stabilized (50.0 vs 50.7). “The PMI result supports our view that economic growth was reasonable in the first quarter of the year, even though material headwinds had accumulated by quarter’s end,” BNZ Senior Economist Doug Steel said.

The BusinessNZ Performance of Manufacturing Index in New Zealand was 55.0 in February, down from 55.1 in January, marking the first time since mid-2021 that activity recorded three consecutive months at 55.0 or higher. The result showed the sector expanding at a consistent rate, highlighting steady growth in the sector. All five sub-indexes were in expansion, led by New Orders at 57.6, followed by Production at 56.7, while Employment dipped to 50.4. Positive sentiment among manufacturers also improved, with 55.5% of respondents reporting favorable conditions, up from 47.7% in January but down from 57.1% in December. Growth was supported by more orders, enquiries, and sales, boosting export demand and conditions in certain sectors. Additional factors included a growing pipeline of work, a gradual improvement in business confidence, and steady activity levels.

The BusinessNZ Performance of Manufacturing Index (PMI) in New Zealand rose to 56.1 in December, up from 51.4 in November, marking the highest level of activity since December 2021. The result capped a year in which eight of the twelve months showed expansion, highlighting steady growth in the sector. All five sub-indexes were in expansion, led by New Orders at 59.8, the strongest reading since July 2021, while Production climbed to 57.4 and Employment recovered to 53.8. Positive sentiment among manufacturers also improved, with 57.1% of respondents reporting favorable conditions, up from 54.4% in November and 45.9% in October. Growth was largely supported by seasonal Christmas demand, boosting domestic sales, orders, and short-term workloads. Additional factors included stronger business and consumer confidence, higher export and forward orders, and gains from new customers, products, and infrastructure projects.