New Zealand BusinessNZ Performance of Manufacturing Index rose from 46.8 to 48.9 in April. Despite this improvement, the sector remains in contraction for the 14th consecutive month.
Breaking down the components of the index, there were some positive developments in April. Production notably increased to 50.8 from 46.0, and employment also rose to 50.8 from 46.8, both crossing into expansion territory. However, new orders still lagged behind, albeit with a slight improvement to 45.3 from 44.6, indicating that demand continues to be tepid. Additionally, finished stocks and deliveries edged closer to a neutral stance, registering at 50.4 and 48.4, respectively.
Catherine Beard, BusinessNZ’s Director of Advocacy, , noted slight improvement in April but also increase in negative sentiment among businesses. She highlighted that “the proportion of negative comments again increased to 69%, compared with 65% in March and 62% in February,” with lack of sales and orders being a recurrent concern alongside the broader struggles of the economy.
BNZ Senior Economist Doug Steel provided further insights, stating that “the PMI this year to date is consistent with manufacturing GDP trailing year earlier levels.” He also noted that the details for April were “a bit more mixed,” and they presented a less uniformly weak picture than in recent months.
