FX.co ★ New Zealand Factory Activity Returns to Expansion in October

In October, New Zealand's BusinessNZ Performance of Manufacturing Index (PMI) increased to 51.4, marking a rise of 1.3 points from September's figure of 50.1. Among the five primary sub-indices analyzed, four demonstrated growth. These include New Orders, which improved to 54.9 from 50.5 in September, and Production, which moved to 52.0 from 50.5. Deliveries of Raw Materials slightly decreased to 50.6 from 51.2, while Finished Stocks grew to 51.3 from 50.7, maintaining their expansion. In contrast, Employment continued to contract, albeit slightly less so, at 48.1 compared to September's 47.7. Despite a modest reduction in negative sentiment among respondents, dipping to 54.1% from 60.2% in September, manufacturers are still grappling with issues such as stagnant sales, cautious customer behavior, rising costs, and enduring global uncertainties. The data signals that the sector's recovery is uneven, with growth appearing sporadic and gradual.