New Zealand’s BusinessNZ Performance of Manufacturing Index eased from 54.8 to 53.2 in March, signaling that manufacturing activity remains in expansion but at a slower pace. The details showed some loss of momentum, with production falling from 56.3 to 53.8 and new orders easing from 57.2 to 55.8, while deliveries slipped to the neutral 50.0 level.
Despite the softer activity indicators, employment improved from 50.3 to 51.4, suggesting firms are still hiring cautiously. However, the jump in finished stocks from 51.3 to 54.0 points to a potential buildup of inventory, which could reflect weaker demand conditions toward the end of the quarter.
Sentiment has clearly deteriorated. BusinessNZ’s Catherine Beard noted that negative commentary surged to 62.0% from 44.5%, with the war in Iran cited as a key concern. BNZ’s Doug Steel added that growth was “reasonable” in the first quarter but warned that headwinds intensified by quarter-end.
