NZ’s manufacturing PMI plunges to 43.1

New Zealand’s manufacturing industry saw further contractionary conditions somewhat recently in 2023, as per the most recent BusinessNZ Performance of Manufacturing Index. 

The area’s occasionally adjusted PMI ended 2023 with a critical decrease in processing plant action with a rating of 43.1, down from November’s 46.5. 

The outcome denotes the least degree of movement in the market since October and the PMI’s tenth continuous month of decline. 

“While the year started off with consecutive results in expansion, since then it has gotten progressively harder for manufacturers with July-December activity averaging only 45.0, compared with January-June averaging 49.2.  

Also, to note that for December, the key sub-index of Production (40.5) was at its lowest point for a non-lockdown COVID month since March 2009,” said BusinessNZ’s director for advocacy, Catherine Beard. 

In the interim, the PMI showed that work is presently not a significant limitation to creation and the critical vertical tension that has been on compensation throughout the previous few years should now be lessening.  

The domestic manufacturing area is largely subject to four variables: domestic demand, food production, construction, and exports. 

It will consequently be upheld by the country’s solid migration-driven populace development and the expenditure of a developing number of sightseers. To put it plainly, more individuals are spending more. 

“The December PMI reaffirms our view that economic conditions remain very difficult. While we expect the economy, and the manufacturing sector, to gain some momentum by the end of 2024, the next few months will remain challenging, especially with retail spending and construction activity being under pressure,” said the head of research at BusinessNZ, Stephen Toplis.