The BNZ-Business New Zealand Performance of Manufacturing Index for May was flat at 48.9. (file image) Photo: 123RF
The country's manufacturing sector contracted for the third month in a row in May as the level of new orders, production and employment remained depressed.
The BNZ-Business New Zealand Performance of Manufacturing Index (PMI) for May was flat at 48.9, with a reading below 50 indicating manufacturing activity was declining.
The latest result was all but unchanged from April and remained well below the long-term average activity rate of 53.0.
BNZ senior economist Doug Steel said the data reflected the recently confirmed recession as demand eased and the rate of new orders fell.
"Gone is the dominance of supply-side laments, especially regarding staff," he said.
"But new negatives have arisen, for all of them to [still be] outnumbering the positive issues referenced."
He said lowering production levels across the sector indicated further contraction in the coming months.
BusinessNZ advocacy director Catherine Beard said manufacturers remained deeply negative about their prospects.
"Beyond seasonal factors such as weather, comments tended to concentrate on slowing orders/deteriorating demand and lower sales levels," she said.
