New Zealand manufacturing activity expands at slower pace in July amid cost pressures

Key facts

• New Zealand's manufacturing sector expanded in July.
• The pace of expansion slowed in July.
• The Performance of Manufacturing Index fell to 54.3 in July.
• The index was 60.1 in the previous period.
• Businesses cited rising costs as a factor.
• Businesses cited cautious consumer spending as a factor.
• A PMI reading above 50 indicates expansion.

New Zealand's manufacturing activity continued to expand in July, but at a slower pace compared to previous periods. The Performance of Manufacturing Index (PMI) recorded a reading of 54.3, a decrease from the 60.1 registered in the prior month. This slowdown was attributed by businesses to escalating cost pressures and a general sense of caution among consumers regarding spending. Despite the deceleration, the PMI figure of 54.3 still signifies ongoing growth within the manufacturing sector, as it remains above the 50-point threshold that separates expansion from contraction. The data suggests that while the sector is not shrinking, the rate at which it is growing has been tempered by economic headwinds.