WELLINGTON (Reuters) – New Zealand’s manufacturing sector contracted for the third consecutive month in December, while the negative mindset of manufacturers has picked up pace.
The Bank of New Zealand-Business NZ’s seasonally adjusted Performance of Manufacturing Index (PMI) was 47.2 in December, in line with the month before. New orders improved but continue to contract at 46.1.
A reading above 50 indicates manufacturing activity is expanding, while anything below that threshold points to contraction.
BNZ Senior Economist Doug Steel said the latest PMI result broadly ﬁts with the clear decline already expected for manufacturing GDP in the fourth quarter with further slippage expected in the first quarter of this year.