The manufacturing industry in New Zealand persisted in its contraction during January, though at a decelerated pace, according to the most recent data provided by BusinessNZ. The organization's Performance of Manufacturing Index displayed a 47.3 score.
This score represents an increase from the adjusted 43.4 value in December (originally reported to be 43.1). Nevertheless, it still marks a contraction, as it falls below the crucial 50-point threshold distinguishing growth from reduction.
Looking at the specific sectors within the industry, only employment (51.3) demonstrated expansion. All the other sectors, namely new orders (47.7), completed inventories (47.3), deliveries (49.3), and production (42.1), showed signs of contraction.
BNZ Senior Economist Doug Steel emphasized the employment sector's unique growth amid the predominantly declining indicators. He suggested, "Despite the noticeable decline in production and demand markers like new orders, employment has remarkably bounced back above 50." He further postulated that this slight surge in employment within the PMI may indicate easier access to workforce reported by manufacturers lately.
