New Zealand’s BusinessNZ Performance of Manufacturing Index (PMI) eased to 53.2 in March from a downwardly revised 54.8 in February, marking the slowest pace of expansion since last November, though it remained above the long-term average of 52.5. The latest reading indicates the sector continued to grow, but at a more moderate rate, with the conflict in Iran weighing notably on activity.
Four of the five sub‑indexes stayed in expansion territory. New orders remained the main driver, though they softened to 55.8 from 57.2 in February. Finished stocks rose to 54.0 (from 51.3), production slipped to 53.8 (from 56.3), and employment edged up to 51.4 (from 50.3). Deliveries were unchanged overall, holding steady at 50.0 compared with 50.7 previously.
“The PMI result supports our view that economic growth was reasonable in the first quarter of the year, even though material headwinds had accumulated by quarter’s end,” said BNZ Senior Economist Doug Steel.
