BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
Still in contraction at 48.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining)
- up from 47.4 in May
The long run average for the survey is 52.5.
BusinessNZ’s Director, Advocacy Catherine Beard:
- manufacturers struggling to see expansion in most elements of their business
- four of the five main sub-index values were in decline
- manufacturers report a major slowdown due to weak consumer demand, high living costs, and economic uncertainty
- falling construction activity, rising input costs, and global instability are reducing orders and cashflow, while supply chain issues add further pressure
BNZ’s Senior Economist Doug Steel:
- “looking across the PMI sub-indices, they all remain well below their historical averages. Despite talk of an economic recovery, conditions are still very tough”
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Earlier this week the Reserve Bank of New Zealand left its cash rate target unchanged, and indicated that if inflaiton driops lwoer they'd lower rates:
Reserve Bank of New Zealand next meet on August 20.
