New Zealand BusinessNZ Performance of Manufacturing Index dropped -11.9 to 26.1 in April. That’s the lowest level on record since the survey began, with prior low at 36.1 record in November 2008 during the global financial crisis. Production (down from 31.4 to 19.8) and new orders (down from 36.6 to 17.8) were particularly hit hard.
BusinessNZ’s executive director for manufacturing Catherine Beard said, “looking at comments from respondents, only two words stand out, namely COVID-19 and lockdown, with 89.7% of respondents outlining negative comments”. Lockdown was lowered to level 3 on April 28 and level 2 on May 14. “This should see a return to relatively stronger levels of activity. However, to what extent the sector climbs out of rock bottom will largely depend on the ability to get new orders up and running, along with revised factory floor processes for production”.
BNZ Senior Economist, Doug Steel said that “recent negative PMI readings from around the world illustrate the widespread economic pain being felt. New Zealand’s April reading is lower than other countries we often compare ourselves to, which tallies with suggestions that NZ restrictions have been tighter than many”.
