FX.co ★ New Zealand Factory Activity Slips Again in June

In June, New Zealand's BusinessNZ Performance of Manufacturing Index (PMI) climbed to 48.8, up from 47.5 in May. This indicates a second consecutive month of contraction, following a four-month growth streak. Although there's a slight improvement, it comes amidst growing challenges as manufacturers face difficulties in expanding most operational areas. Of the five main sub-indexes, four experienced declines. New Orders stood out with an increase, rising to 51.2 and hinting at some short-term optimism. Production edged up to 48.6, approaching stability, but Finished Stocks dropped to a seven-month low at 46.9 and Employment continued to contract at 47.9. Sentiment among respondents remains cautious, with over 65% expressing a pessimistic outlook. Principal concerns include weak consumer demand, elevated living costs, decreased construction activity, and global uncertainties, all impacting orders and cash flow.