Key insights
- New Zealand's manufacturing growth slowed to a 6-month low in April, with the PMI falling to 50.5. Rising freight and fuel costs due to the Middle East conflict are impacting raw material deliveries. This signals potential inflationary pressures and supply chain disruptions, which could have a minor negative impact on global markets, including the US, by contributing to broader concerns about global economic growth.
SYDNEY, May 15 (Reuters) - New Zealand’s manufacturing index marginally expanded in April, but the sector’s growth slowed to a six-month low as the conflict in the Middle East drove up costs and disrupted supply chains, a survey showed on Friday.
The Bank of New Zealand-Business NZ’s seasonally adjusted Performance of Manufacturing Index fell to 50.5 in April, down from a revised 52.8 in March.
A reading above 50 indicates manufacturing activity is expanding, while anything below that threshold points to contraction.
"Many of the comments (from businesses) focused on the effect of the war against Iran on freight and fuel costs, as well as its impact on deliveries of raw materials," Business NZ’s Director of Advocacy Catherine Beard said in a statement.