New Zealand’s Manufacturing Activity Retreats in November

New Zealand’s manufacturing sector witnessed a lower level of expansion in November, according to an economic survey released early Friday.

The BNZ-Business New Zealand Performance Manufacturing Index (PMI) for November dropped 3.6 points to 50.6, which was still in expansion, but at slower rate than was seen in the first half of the year.

A reading above 50 indicates an expansion in activity, while anything below that threshold indicates a contraction.

In addition, the proportion of negative comments from respondents rose to 57.6 percent in November, compared with 55.4 percent for October and 71 percent in September.

New orders at 54.7 points had remained consistent over the last three months. Production (52.2) while positive “remained somewhat uninspiring.

Employment (48.2) fell back into contraction for the first time since December 2020, finished stocks (48.3) and deliveries (42.9) returned to contraction after exhibiting expansion in October.

The latest PMI indicated economic and employment growth were soft. With obvious difficulties remaining on the supply side, inflation is expected to continue surging.