The Performance of Manufacturing Index (PMI) has seemingly settled above the breakeven 50 mark. Its November reading (51.4) was steady around the same level as October (51.2).
Data released yesterday showed core manufacturing sales volumes (excluding meat and dairy) eased 0.2% q/q in Q3 2025. Restarts at Methanex and Tiwai Point were offset by the closure of other manufacturing plants.
Monthly movements in the PMI sub-indices were mixed. The PMI employment index jumped from 48.3 to 52.4, its largest lift in one month since mid-2021. But, stepping back from month-to-month volatility, the employment index sits at 49.5 on a 3-month average basis, suggesting stable rather than growing employment.
Australia’s PMI (51.6) nudged back above New Zealand’s (51.4) in November. The PMIs imply similar manufacturing sector conditions across the two countries at present, but it is important to remember that our PMI was much deeper in contraction than Australia across most of 2023 and 2024.
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