April PMI falls to 50.5, the lowest in months, as freight disruptions from the Iran conflict hit orders and deliveries.
New Zealand’s manufacturing sector barely expanded in April, with the Performance of Manufacturing Index dropping to 50.5 from 52.8 in March. The reading, the weakest in several months, signals near-stagnant conditions as supply chain disruptions weigh on activity.
The decline was driven by contractions in new orders (48.2) and raw material deliveries (46.5), both below the 50-point threshold separating expansion from contraction. Employment remained the strongest sub-index at 53.4, while production held at 51.7. Micro-firms recorded a sharp contraction at 39.2, contrasting with medium-large firms at 56.8.
Analysts warned the resilience seen earlier in the year may be fading, with 64% of respondents citing freight costs, fuel prices, and delays linked to the Iran conflict as key headwinds. The index remains below its long-term average of 52.5, raising concerns about sustained weakness.