New Zealand’s manufacturing sector lost significant momentum in April, with the BusinessNZ Performance of Manufacturing Index falling from 52.8 to 50.5, only marginally above the breakeven 50 level that separates expansion from contraction. The details of the report pointed to a broad loss of momentum, particularly in forward-looking components tied to demand and supply-chain activity.
New orders dropped sharply from 55.0 to 48.2, slipping into contraction territory and signaling weakening future demand. Deliveries also deteriorated notably, falling from 49.6 to 46.5 — the weakest reading since July 2024 — highlighting growing disruptions in supply chains and raw material availability. Production eased from 53.4 to 51.7, while finished stocks declined from 53.8 to 50.5. Employment was the only major component to improve, rising from 51.8 to 53.4.
BusinessNZ Director of Advocacy Catherine Beard said many firms cited the impact of the Iran war on freight costs, fuel prices, and delivery times for raw materials. “The proportion of respondents highlighting negative influences on their business performance was 63.6%,” she noted, up from 62.0% in March.
BNZ Head of Research Stephen Toplis warned the slowdown may now be becoming more serious. “We feared it was only a matter of time before the wheels started to fall off and, alas, the April survey indicates that time may now have arrived,” he said.
| Indicator | March | April |
|---|---|---|
| BusinessNZ Manufacturing PMI | 52.8 | 50.5 |
| Production | 53.4 | 51.7 |
| Employment | 51.8 | 53.4 |
| New Orders | 55.0 | 48.2 |
| Finished Stocks | 53.8 | 50.5 |
| Deliveries | 49.6 | 46.5 |
| Negative Business Comments | 62.0% | 63.6% |
