Forex
Home›Forex›EM Currencies›New Zealand manufacturing PMI eases in July but stays…
New Zealand manufacturing PMI eases in July but stays in expansion
The BNZ BusinessNZ Performance of Manufacturing Index fell to 54.3 from 60.1, while survey comments turned more negative around Middle East costs and election uncertainty.
New Zealand manufacturing growth slowed in July, with the BNZ BusinessNZ Performance of Manufacturing Index easing to 54.3 from June’s 60.1, according to data cited by Forexlive. The reading remained above 50, indicating the sector continued to expand.
Forexlive noted that every sub-index stayed in expansion territory and that the July pullback appears more like a correction after an exceptional June than a sign of a broader downturn. The headline figure was also described as holding well above the survey’s long run average of 52.5.
The more significant shift came from respondent sentiment, with a majority of comments turning negative. Manufacturers pointed to elevated fuel and raw material costs linked to the conflict in the Middle East, softer customer spending, and uncertainty tied to New Zealand’s upcoming election as headwinds.
The report suggested the caution is likely to show up first in softer new orders and employment readings before it affects headline output, even as growth continues. BusinessNZ’s Director of Advocacy, Catherine Beard, said the easing was expected after the strong June result, and that 54.3 still represents a solid outcome for the sector.