New Zealand BusinessNZ manufacturing index rose 0.3 to 48.4 in August, indicating slightly slowing pace of contraction. However, the details are not too encouraging. The sub-index of new orders (45.6) dived further into decline, at its lowest point in over ten years since May 2009. Production (49.7) fell from expansion to decline. Employment (49.3) remains in contraction after some recovery.
BNZ Senior Economist, Doug Steel said that “disconcertingly, the PMI adds to a building case over recent times that there has been a palpable softening in demand – at least for manufactured goods”.