Latest news with #Doug Steel
RNZ News
3 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.
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.
Yahoo
10-07-2025
- Business
- Yahoo
New Zealand manufacturing ticks up in June but still in contraction, survey says
SYDNEY (Reuters) -Manufacturing activity in New Zealand slightly rose in June but still remained in contraction as businesses continue to grapple with weak consumer demand, high living costs and economic uncertainty, a survey showed on Friday. The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index (PMI) edged higher to 48.8 in June from a revised 47.4 in May. The new orders index rose to 51.2 from a revised 45.4 in the prior month. A reading above 50 indicates manufacturing activity is expanding, while anything below that threshold points to contraction. "Looking across the PMI sub-indices, they all remain well below their historical averages. Despite talk of an economic recovery, conditions are still very tough," BNZ Senior Economist Doug Steel said in a statement. Sign in to access your portfolio
