New Zealand manufacturing contracts in May amid economic uncertainties
SYDNEY, June 13 (Reuters) - Manufacturing activity in New Zealand fell back into contraction in May, after four straight months of expansion, because of weak demand, rising costs and low business confidence amid global economic uncertainties, a survey showed on Friday.
The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index (PMI) dipped to 47.5 from a revised 53.3 in April. New orders slumped to 45.3 from a revised 50.8 in the prior month.
A reading above 50 indicates manufacturing activity is expanding, while anything below that threshold points to contraction.
"The New Zealand economy can claw its way forward over the course of 2025, but the PMI is yet another indicator that suggests an increased risk that the bounce in GDP ... could come to a grinding halt," BNZ Senior Economist Doug Steel said.
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