New Zealand BusinessNZ Manufacturing PMI for July: 48.2 (prior 51.3)

ps. BusinessNZ have been in the news already today, prompting a response from RBNZ Gov Orr:

• RBNZ Gov Orr says global and domestic low inflation expectations key reason for lower official interest rates

Anyway, back to the PMI ....

Comes in at 48.2 in July, dropping into contraction for the first time since 2012!

• prior 51.2, revised down from 51.3

BusinessNZ's comments:

• "While the key sub-index of production (51.1) kept its head above water with a result matching the previous month, the other key sub-index of new orders (48.9) fell 3.5 points to its lowest result since December 2012. Worst still, employment (42.6) experienced its third consecutive decline to reach its lowest value since June 2009. The proportion of positive comments for July (44.0%) remained the lesser of the two options, although not quite as bad as June (42.9%). A lack of orders and customer demand dominated the negative comments received, along with a general softening of markets.

BNZ

• "while July's result is no dead-set that the economy at large is contracting, the shrinkage is certainly something to take note of".