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RNZ News
5 days ago
- Business
- RNZ News
Manufacturing index back in positive territory
July's BNZ-BusinessNZ Performance of Manufacturing Index (PMI) rose 3.6 points to a seasonally adjusted 52.8 points. Photo: RNZ The manufacturing sector has picked up again, with all economic indicators in expansion. July's BNZ-BusinessNZ Performance of Manufacturing Index (PMI) rose 3.6 points to a seasonally adjusted 52.8 points, just above the long-term average. A reading above 50 indicates manufacturing was generally expanding, while under 50 indicated a decline. Production, employment, new orders, finished stocks and deliveries were all in expansion. "[The PMI] will need to be sustained or nudge a bit higher to be consistent with our economic forecasts, but it is good to see a move for the better," BNZ senior economist Doug Steel said. He said manufacturers were still facing an increase in United States tariffs, which were set at 15 percent for New Zealand , compared with 10 percent for Australia. Manufacturers were also navigating higher gas prices , up nearly 21 percent in the first quarter over the year earlier. "Given the prevailing headwinds it is, perhaps, even more encouraging that the PMI has moved back into expansion," he said. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Reuters
5 days ago
- Business
- Reuters
New Zealand manufacturing activity expands in July, survey shows
SYDNEY, Aug 15 (Reuters) - Manufacturing activity in New Zealand rose in July, returning to levels of expansion seen during early 2025 after new orders and production metrics hit the highest level in three years, a survey showed on Friday. The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index (PMI) increased to 52.8 in July from a revised 49.2 in June. The new orders index rose to 54.2 from a revised 51.8 in the prior month. A reading above 50 indicates manufacturing activity is expanding, while anything below that threshold points to contraction. "Given the prevailing headwinds it is, perhaps, even more encouraging that the PMI has moved back into expansion. It will need to be sustained or nudge a bit higher to be consistent with our economic forecasts," BNZ senior economist Doug Steel said.
RNZ News
11-08-2025
- Business
- RNZ News
Industrial gas users hobbled by falling supply, rising prices
The Kapuni Gas Treatment Plant in Taranaki. Photo: RNZ / Robin Martin Businesses relying on gas for manufacturing and processing are facing crisis with jobs, services and their future on the line, according to a survey. The BusinessNZ Energy Council (BEC) and Optima say gas prices have more than doubled on average over the past five years, with about half of the 66 respondents having cut staff and costs, increased prices, and reduced production. The manager of energy consultancy Optima, Martin Gummer, said the gas shortage was not all about big power companies. "It's used in the creation of everyday products and services for New Zealanders. Things like coffee roasting, beer brewing, infant formula, meat and vegetable production harness natural gas as part of their process." Eighty percent of the respondents have gas supply contracts that expire by 2027, exposing them to even higher prices as natural gas supply falls. The shortage of gas has already led to fertiliser manufacturer Ballance to look at halting production after it was outbid for supply. A meeting was held last week with Resources Minister Shane Jones although no hard and fast measures to improve supply appeared to have been reached. BEC executive director Tina Schirr said unless action was taken the manufacturing sector would seriously suffer. "If we do nothing, a major de-industrialisation crisis could escalate in the next two years, having serious and devastating consequences for suppliers and customers of gas-using businesses." She said 40 percent of businesses might be able to switch to alternative fuels such as biomass, but an equal number said there were no commercially viable alternatives in the short term. A move to biogas was possible, but there was a gap between demand and manufacturing it, with neither side prepared to commit financially, Schirr said. To make progress the government should look to offer support for biogas manufacturing or helping businesses move direct to electricity, she said. A fund offering such assistance - the Government Decarbonising Industry Fund (GIDI) - was axed by the government last year, after being criticised as corporate welfare. Schirr said the country and businesses needed a bipartisan energy policy, which would give certainty to investors, allowing them to commit financial and physical resources to exploration and developing new gas fields. "We urge the government to use all the levers at its disposal to help free up gas supplies and get more gas out of the ground. Increased investment in developing gas fields short-term is desperately needed to reduce the shortfall in supply." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
10-08-2025
- Business
- RNZ News
Businesses welcome two new seasonal visas
A Wairarapa vineyard in spring. Photo: Supplied BusinessNZ is welcoming the introduction of two new seasonal visa pathways saying they will support the agriculture and tourism sectors. The government has introduced a new three year visa and a seven month visa - each aimed at allowing experienced workers to return to the country for seasonal work. Susie speaks with BusinessNZ Chief Executive Katherine Rich, who says the new visas are a common sense initiative to reduce the costs and time spent sourcing seasonal staff.
RNZ News
11-07-2025
- Business
- RNZ News
New Zealand's manufacturing slump continues, slowing economic recovery
The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) improved slightly to 48.8 from 47.4 in May. Photo: UnSplash/ Silvia Brazzoduro New Zealand's manufacturing slump continued in June, slowing the country's economic recovery. The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) improved slightly to 48.8 from 47.4 in May. A reading below 50.0 indicates contraction. BNZ senior economist Doug Steel said the data showed manufacturers enduring difficult trading conditions, and pointed to the recovery running out of steam in the second quarter. "The high frequency data, including today's PMI, is suggesting that growth will struggle to have a positive sign in it, in the second quarter. "Indeed, I think there is increasing risk that the economy contracted in the second quarter." Among the sub-indexes only new orders was expansionary, while three of the other four sub-indexes improved slightly but stayed in contraction, with finished stocks falling sharply. Steel said the fall in stocks suggested manufacturers were destocking to improve their position. "This volatility highlights just how difficult it is for manufacturers to forecast their order book at present." Steel said momentum has slowed dramatically in the economy in the second quarter and the economy needs more help via lower interest rates. BusinessNZ director Catherine Beard said the positive start to the year was being undone, and familiar issues remained the key challenges to the sector. "Manufacturers report a major slowdown due to weak consumer demand, high living costs, and economic uncertainty. "Falling construction activity, rising input costs, and global instability are reducing orders and cashflow, while supply chain issues add further pressure," she said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
