This month’s PMI adds to the swathe of data that is suggesting the New Zealand economy stalled in Q2. Sure, there was a small improvement in the headline index from 47.4 to 48.8, but it still sits firmly below its breakeven level.
Looking across the PMI sub-indices, they all remain well below their historical averages. Despite talk of an economic recovery, conditions are still very tough.
The latest Quarterly Survey of Business Opinion (QSBO) showed a variable outlook for the manufacturing sector. A net 20% of manufacturers expected better economic conditions in the next three months.
Ending on a more positive note, hydro lake levels have nudged back above average for this time of year. They had been below 80% of their usual level only two months ago.
Keep up-to-date with the latest news and insights, and get all the benefits of being part of the AMA community.