New Zealand's manufacturing activity continued to contract at a faster rate in November. The seasonally adjusted performance of manufacturing index, or PMI, dropped to 45.5 from 45.7 in October, slipping further below the 50-marker that separates growth from contraction, as reported in the latest Business NZ release.
Catherine Beard, BNZ's director for advocacy, remarked that the production and new order sub-indices hit their lowest points since June and July, respectively. Employment in the sector has remained in contraction for the fourth consecutive month, with improvements only noted in the finished stocks and deliveries sub-indices.
The manufacturing sector has now been in contraction for 21 straight months. The negative responses, emphasizing the shortages in orders alongside rising living costs, increased to 56% in November from 53.5% the previous month, although this figure is lower compared to September, August, and July, as noted by BNZ.
"The main message of a manufacturing sector still under significant pressure remains," stated Doug Steel, BNZ's senior economist. "Recent business surveys report that manufacturers are feeling more confident about the outlook, but there is scant evidence of a general turnaround in activity to date.".