NZ’s Performance of Manufacturing Index (PMI) simply had to lift to provide us with any confidence that the recovery we are forecasting will happen.
Looking across the PMI sub-indices, they all moved in the right direction. The PMI new orders index (54.2) nudged above its historical average (54.0) for the first time since August 2022.
The latest headwind for manufacturers in NZ is the 15% tariff on goods exports to the US, up from 10% previously. Importantly, our exporters now are at a 5% disadvantage relative to some other countries (e.g. Australia at 10%).
Given the prevailing headwinds it is, perhaps, even more encouraging that the PMI has moved back into expansion.
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