New Zealand Manufacturing Growth at 3-Month Low

The BusinessNZ Performance of Manufacturing Index in New Zealand declined to 53.1 in August, down from 54.3 in July, marking the 22nd consecutive month of expansion but remaining above the long-term average of 52.5. It was the lowest reading since May, as two of the five sub-indices expanded at softer rates: production (54.2 vs 57.1 in July) and deliveries (52.6 vs 55.5) both remained well above the 50.0 mark but expanded at a slower rate, while employment declined to a stable level (50.0 vs 52.2). Meanwhile, new orders (54.9 vs 53.6) and stocks of finished products (56.4 vs 53.4) both grew at a faster pace. “Respondents continue to point to cost-of-living pressures and the ongoing conflict in the Middle East as reasons for holding back, but new orders and finished stocks remaining comfortably in expansion suggest there’s still genuine underlying demand,” said BusinessNZ’s Director of Advocacy, Catherine Beard.

The Business NZ Performance of Manufacturing Index in New Zealand fell to 54.3 in July, down from an upwardly revised 60.1 in June, marking the 21st consecutive month of expansion and remaining well above the long-term average of 52.5. The deceleration in factory activity came as all of the sub-indices expanded at a softer rate. New orders (53.3 vs 64.1 in June), production (57.3 vs 59.2), deliveries (55.8 vs 57.6), stocks of finished products (53.2 vs 56.9), and employment (52.8 vs 55.6) were all well above the 50.0 mark, but expanded at a slower rate. " Respondents continue to point to the conflict in the Middle East, high fuel and raw material costs, and a general reluctance from customers to spend, with a number also citing uncertainty ahead of the election," said BusinessNZ’s Director of Advocacy, Catherine Beard.

The Business NZ Performance of Manufacturing Index in New Zealand increased to 59.7 in June, up from an upwardly revised 51.3 in May, marking the twelfth consecutive month of expansion and well above the long-term average of 52.5. It was the strongest growth in factory activity since July 2021, with new orders being the standout at 64.1 (vs 53.2 in May), pointing to a healthy pipeline of work ahead. Meanwhile, production surged to 59.4 (vs 50.6), while deliveries rose to 57.3 (vs 52.9). Stocks of finished products (56.9 vs 54.3) and employment (55.8 vs 51.4) were also well above the 50.0 mark, an encouraging sign for manufacturing hiring. " There are still real headwinds with the conflict in the Middle East and high fuel prices continuing to be a factor for many respondents, but this month's result reflects a huge positive shift after a long stretch of soft results, which is a very welcome turn," said BusinessNZ’s Director of Advocacy, Catherine Beard.