By James Glynn
SYDNEY–Activity across New Zealand’s manufacturing sector lost momentum in September as firms continued to face severe labor shortages while facing sharply rising input costs.
The BNZ – BusinessNZ Performance of Manufacturing Index was 52.0 in September, down 2.8 points from August, and the lowest level of activity since June.
The September result couldn’t build on the above-average growth experienced during the previous two months, BusinessNZ Director of Advocacy Catherine Beard said.
The loss of momentum comes as the Reserve Bank of New Zealand continues to raise interest rates at speed, while talk of a coming global recession is also increasing with the Federal Reserve ramping up interest rates while fighting a significant battle to tame inflation.
Production and new orders both fell in September, with the latter moving into contraction for the second time in 13 months, the data showed.
Manufacturers have continued with a more negative mindset, with the proportion of negative comments at 61.5% for September, compared with 53.6% in August and 62.1% in July. Labor shortages, decreased demand and cost pressures weighed mostly on sentiment.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
10-13-22 1834ET