New Zealand’s BNZ Performance of Manufacturing Index held steady at 49.9 in September, marking another month of contraction and remaining below its long-term average of 52.4.
The data highlighted a mixed picture across key components — production edged up from 47.8 to 50.1, barely returning to expansion, while employment dropped from 49.1 to 47.5, weighing on the overall index. New orders also slipped from 54.7 to 50.3, suggesting softening demand momentum.
BusinessNZ Director of Advocacy Catherine Beard said it was encouraging that the PMI did not show deeper contraction, but the sector remained “agonizingly close to returning to expansion mode.” She added weakness in employment prevented the headline figure from crossing the 50 threshold.
Survey respondents continued to highlight muted customer demand and rising cost pressures, with 60% of comments negative, up from August. Manufacturers reported lower order volumes, tight margins, and competitive pricing pressures, reflecting both domestic uncertainty and subdued export demand.
