Manufacturing in New Zealand continued to expand in July, although at a slower pace than in June, as larger sentiment remained negative, with concerns about the Middle East conflict and cost-pressures holding back spending, BusinessNZ said Friday.
According to the BusinessNZ Performance of Manufacturing Index (PMI), seasonally adjusted PMI for July came at 54.3, a reading above the 50.0 mark that indicates expansion. It fell from the 60.1 in June but managed to stay above the survey's long-term average of 52.5.
Respondent comments reflected concerns about cost pressures, from fuel and freight to raw materials, as well as uncertainty ahead of the general election in November.
All sub-indices showed growth, led by production at 57.3, while new orders fell back to 53.3 and employment came in at the bottom at 52.8.
"We acknowledge 54.3 is softer than June's staggering result, however, some month-on-month volatility in the PMI is common and not an immediate cause for concern," said Doug Steel, BNZ senior economist.