New Zealand’s manufacturing sector saw an easing of expansion in September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for September was 52.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2.8 points lower than August, and the lowest level of activity since June.
BusinessNZ’s Director, Advocacy Catherine Beard said that the September result could not build on the above average growth experienced during the previous two months.
“Looking at the sub-index results, the two key sub-index values of Production (52.0) and New Orders (48.4) both fell back from August, with the latter moving back into contraction for the second time in 13 months. Conversely, Finished Stocks (55.0) was at its highest point since July 2021, while Deliveries (54.5) experienced a further lift from August”.
Manufacturers have continued with a more negative mindset, with the proportion of negative comments at 61.5% for September, compared with 53.6% in August and 62.1% in July. Labour shortages, decreased demand and cost pressures were the main flavour of comments made by manufacturers.
BNZ Senior Economist, Doug Steel stated “the overall trend remains positive, but with ongoing volatility around it. On the positive side, the PMI’s 3-month moving average has continued to edge higher this month but, not so good, the 52.0 monthly reading is now back below the PMI’s longer-term norm”.
