In a significant shift for New Zealand's manufacturing industry, the Business NZ Performance of Manufacturing Index (PMI) contracted in May 2025, falling to 47.5 from a previous metric of 53.9 recorded in April. This recent data was updated on the 12th of June, unveiling a concerning trend for the sector.
This decline below the 50-mark, which separates growth from contraction, suggests a decrease in manufacturing activity across New Zealand. The drop from April's healthy expansion to May's contraction is noteworthy, highlighting the challenges the sector faces as it adapts to changing economic conditions and potential disruptions in supply chains.
Economists and industry leaders will likely scrutinize this development closely, as sustained contraction could impact employment, business investments, and overall economic growth. The next few months will be critical in determining whether this dip is a short-term fluctuation or indicative of more deep-seated issues within New Zealand’s manufacturing sector. The new data calls for a strategic response from industry stakeholders to address the root causes and steer the sector back towards growth.
