New Zealand’s manufacturing sector saw another lift in expansion for August, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for August was 54.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 1.4 points higher than July, and the highest level of activity since July 2021.
BusinessNZ’s Director, Advocacy Catherine Beard said that the August result represented the second consecutive month being above the long-term average of 53.1 for the survey.
“Looking at the sub-index results, the pick-up was influenced by New Orders (59.2) at its highest level since July 2021, along with Production (54.6) at its highest point for 2022. Overall, it was the first time all five sub-index values were in expansion since May.”
Despite the lift in overall expansion levels, manufacturers have continued to have a more negative mindset, although the proportion of negative comments was down from 62.1% in July to 53.6% in August. Staff retention/shortages continue to dominate comments made by manufacturers.
BNZ Senior Economist, Craig Ebert stated “ that manufacturing production, in general, was holding its own in Q2, rather than drooping, was portrayed in the PMI readings for April May and June. And in July and August the PMI has moved on to suggest an improving tone around underlying growth.”
