New Zealand manufacturing slips into contraction amid weak demand, higher costs

SYDNEY - New Zealand's manufacturing activity contracted slightly in May, slipping back into negative territory after seven months of expansion, as businesses remained concerned about weak demand and global economic pressures.

The Bank of New Zealand-Business NZ's seasonally adjusted Performance of Manufacturing Index fell to 49.9 in May from 50.4 in April and 52.8 in March.

A reading above 50 indicates manufacturing activity is expanding, while anything below that threshold points to contraction.

"Manufacturers are obviously struggling in the face of a combination of adverse influences, including lack of customer demand, high fuel prices and the conflict in the Middle East," BusinessNZ Director of Advocacy Catherine Beard said in a statement.

(Reporting by Renju Jose in Sydney; Editing by Chris Reese)

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This story was originally published June 11, 2026 at 6:03 PM.