New Zealand manufacturing growth dented by fuel crisis in April
New Zealand's manufacturing sector eked out only marginal growth in April under pressure from high fuel prices. PMI data show a clear slowdown in production and new orders.
New Zealand's manufacturing sector posted a reading of 50.3 in April on the BusinessNZ Performance of Manufacturing Index, below market expectations. The index sat only just above the 50-point threshold, signalling the sector is brushing against stagnation as cost pressures mount.
The production sub-index slipped to 49.1, while new orders held at 50.2, the report said. Industry representatives say rising global oil prices are weighing on energy-intensive processes across the sector. Many firms have revised their production schedules and started passing higher transport costs through to customer prices.
The BusinessNZ chief economist said firms hope the fuel access disruption proves short-lived. The Reserve Bank of New Zealand recently revised inflation expectations higher in its most recent forecast update. Industry voices expect a retreat in fuel prices to support a renewed pickup in manufacturing growth during the second quarter of the year.
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