The BNZ-BusinessNZ Performance of Manufacturing Index (PMI) ticked up to 48.8 in June, but the sector remained in the red.
BNZ Senior Economist Doug Steel said the PMI sub-indices all remained well below their historical averages.
"Despite talk of an economic recovery, conditions are still very tough".
Although the 48.8 reading was above May's 47.4, a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining.
BusinessNZ director of advocacy Catherine Beard said four of the five main sub-index values remained in decline.
Only New Orders (51.2) climbed into expansionary territory, showing "some optimism for the months ahead, Beard said.
Production (48.6) and Employment (47.9) were higher than in May, while Finished Stocks sank below the 50.0 mark to 46.9 and Deliveries sank lower, to 47.7.
Manufacturers' comments indicated a major slowdown due to weak demand, high living costs and economic uncertainty, the survey said.
"Falling construction activity, rising input costs, and global instability are reducing orders and cashflow, while supply chain issues add further pressure."
2 Comments
Ah yes the real economy. Good thing the OCR held.
Please do not mention that the RBNZ and Treasury are now both forecasting the NZ economy going into recession territory in the next quarter.
Coincidentally, and completely unrelated, investment by the government into the NZ economy has fallen by $3 billion compared to the previous year and is expected to fall by $6 billion over the coming year.
I'm sure lower interest rates can make up for this fiscally mandated economic contraction. That's what every NZ economist is telling us so it must be true.
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