Huge jump for the BusinessNZ Performance of Manufacturing Index as NZ recovers from lockdown
- up 16.5 points from May
- to its highest since April 2018
NZ moved to much looser restrictions on June 8. So this PMI showing a good recovery. A noter of caution from the only component still in contraction though:
- All major PMI components printed above their respective long-term averages in June, except for employment. At 48.5, not only was the employment index below its long-term average of 50.5 but it was also sub-50 indicating the manufacturing sector continues to shed staff. This is a clear indicator that despite some improvement in new orders and production from the horror lows of recent months, the recovery in activity to date has not been strong enough to stop the sector reducing staff levels overall. However, the indicated pace of staff reduction has slowed significantly from May (when the PMI employment index stood at 39.2). The concern is that staff reduction is still happening even with considerable policy support in place, including the government's wage subsidy scheme.
