New Zealand’s manufacturing industry saw a slower expansion rate in September, according to the latest BusinessNZ (BNZ) Performance Manufacturing Index (PMI).
The BusinessNZ PMI stood at 52.0 in September, a 2.8-point decrease from that of August, marking the lowest level of activity since June.
BusinessNZ said the result comes amid labour shortages, decreased demand, and increased cost pressures, which were the primary factors cited by manufacturers.
Catherine Beard, BusinessNZ’s director for advocacy, said 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,” Beard said.
Conversely, Finished Stocks (55.0) was at its highest point since July 2021, while Deliveries (54.5) experienced a further lift from August.”
Local manufacturers have also continued with a more negative mindset, with the proportion of negative comments at 61.5 per cent for September, compared with 53.6 per cent in August and 62.1 per cent in July.
Doug Steel, senior economist at BNZ, said noted that there is ongoing volatility around the overall trend, despite it remaining positive.
“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,” Steel said.
