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- Manufacturing activity expands for fourth consecutive month
- New orders and employment picking up, but production slips
- Uncertain outlook tempers optimism
The recovery in the manufacturing sector continues at a steady pace, but caution lingers.
The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) rose 0.70 points in April to 53.9 - the fourth consecutive month of expansion, and the highest since August 2022.
A reading above 50 indicates expansion.
Rises in the employment, new orders and deliveries components pushed the PMI higher, overcoming falls in production and finished stocks.
However, BNZ senior economist Doug Steel remains cautious, noting that although employment and deliveries of raw materials had risen, suggesting demand ahead, gains in new orders remained below average.
"There's still some question marks around ahead, especially when you look globally and what's happening offshore, That uncertainty hasn't really dented the index here yet." Steel said.
On a positive note, he said that four months of expansion above 50.0 this year suggests that the recovery is underway, albeit slowly.
"It's not particularly strong, but its at least going forward compared to the last couple of years where it was heavily below 50.0. So recovery from a low base."
But Steel remained cautious, saying offshore developments were still key to the recovery's durability.
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