New Zealand manufacturing index falls to 53.1 but stays above 50

New Zealand’s manufacturing sector continued expanding in August, but the BNZ-BusinessNZ Performance of Manufacturing Index fell to 53.1 from 54.3 in July, remaining above both the 50.0 expansion threshold and its long-run average of 52.5. Production and deliveries slowed, while new orders rose to 54.9 and finished stocks increased to 56.4, suggesting underlying demand remained resilient. Employment was the weakest component, easing to the 50.0 breakeven level and indicating no manufacturing job growth during the month. Business sentiment remained cautious, with firms citing cost-of-living pressures and overseas uncertainty, although some reported steady or improving order books. Analysts viewed the reading as consistent with continued, broadening expansion rather than a downturn, while noting employment as an important indicator to watch.