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New Zealand Manufacturing PMI (May) still in contraction at 48.9 (prior 48.8)

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BusinessNZ Performance of Manufacturing Index (PMI) is still well under its longer run average of 53.0

BusinessNZ’s Director, Advocacy Catherine Beard:

  • New Zealand’s manufacturing sector has remained in a relatively tight band of contraction for the last three months. … Beyond seasonal factors such as weather, comments tended to concentrate on slowing orders/deteriorating demand and lower sales levels.

BNZ Senior Economist, Craig Ebert:

  • the range of results in the sub-components is mirrored in the breadth of issues manufacturers are now highlighting in the survey. Gone is the dominance of supply-side laments, especially regarding staff. But new negatives have arisen, for all of them to (still be) outnumbering the positive issues referenced

Data from New Zealand on Thursday confirmed the country’s economy is in recession:

the Reserve Bank of New Zealand have been on an aggressive rate hike cycle to try to drive inflation down.

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