FX.co ★ New Zealand Factory Activity Continues to Expand for 3rd Month

In March 2025, New Zealand's BusinessNZ Performance of Manufacturing Index (PMI) declined to 53.2 from 53.9 in February. Although there was a deceleration, the index continued to indicate expansion for the third consecutive month, with varying performance across the sector. Production climbed to 54.2, marking its highest level since December 2021, while employment increased to 54.7, its best since July 2021, highlighting a robust recovery. Conversely, new orders dropped to 49.6, slipping into contraction territory and underscoring persistent demand challenges. Finished stocks rose to 56.3, suggesting an accumulation of inventory by manufacturers. Despite a slight reduction in negative comments compared to February, over 50% of respondents continued to cite weak demand, a decline in orders, and uncertainty in both domestic and export markets. With global trade policy changes introducing market volatility, the outlook for the manufacturing sector and overall economic growth remains cautiously optimistic.