A reading above 50 indicated growth in the manufacturing sector. Photo: UnSplash/ Rex Roberts
The manufacturing sector is holding its own despite a slowdown in expansion, but there are concerns about the outlook because of global volatility.
The BNZ-Business NZ Performance of Manufacturing Index (PMI) fell 0.9 points to 53.2 in March - the third consecutive month of expansion.
A reading above 50 indicated growth in the sector.
Production and employment edged higher, but dragging the sector back last month was new orders, which was seen as a demand indicator.
BNZ senior economist Doug Steel said the biggest risk was the outlook for demand amid the increasingly bitter trade war between New Zealand's two biggest export markets, China and the United States.
"In this report, we see manufacturers reporting higher production and more employment," Steel said.
"You know, that's clearly positive and very welcome, but those new orders are lagging."
"They're still below the 50-mark, suggesting new orders are even depleting a little bit, and that's in March - before the latest actions in global markets - that raises risks for a lack of demand ahead."
On a positive note, Steel said the PMI data suggested manufacturing economic output increased in the first quarter of 2025.
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