New Zealand Manufacturing Expansion Slows in August

By James Glynn

SYDNEY--Manufacturing activity in New Zealand continued to expand in August, albeit at a slower pace.

The latest BNZ - BusinessNZ performance of manufacturing index stood at 53.1 in August, down 1.2 points from 54.3 in July, but still above the survey's long-term average of 52.5.

"Respondents continue to point to cost of living pressures and the ongoing conflict in the Middle East as reasons for holding back," Catherine Beard, BusinessNZ's director of advocacy, said.

"But new orders and finished stocks remaining comfortably in expansion suggests there's still genuine underlying demand," she added.

The data comes as the Reserve Bank of Zealand continues to raise interest rates due to concerns about lingering inflation risks, while unemployment has risen to its highest level in over a decade.

New Zealanders will also elect a new government in early November, with uncertainty around policy direction likely to put a temporary brake on activity.

Manufacturing sentiment softened again in August, with 55.7% of comments negative, though a good number of respondents pointed to steady or improving order books as a more positive note, the data showed.

Employment was the weakest sub-index at 50.0, essentially flat after easing from 52.2 in July, while new orders and finished stocks were strong.

Write to James Glynn at james.glynn@wsj.com

(END) Dow Jones Newswires

September 10, 2026 19:22 ET (23:22 GMT)