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RNZ News
11-07-2025
- Business
- RNZ News
New Zealand's manufacturing slump continues, slowing economic recovery
The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) improved slightly to 48.8 from 47.4 in May. Photo: UnSplash/ Silvia Brazzoduro New Zealand's manufacturing slump continued in June, slowing the country's economic recovery. The BNZ-Business New Zealand Performance Of Manufacturing Index (PMI) improved slightly to 48.8 from 47.4 in May. A reading below 50.0 indicates contraction. BNZ senior economist Doug Steel said the data showed manufacturers enduring difficult trading conditions, and pointed to the recovery running out of steam in the second quarter. "The high frequency data, including today's PMI, is suggesting that growth will struggle to have a positive sign in it, in the second quarter. "Indeed, I think there is increasing risk that the economy contracted in the second quarter." Among the sub-indexes only new orders was expansionary, while three of the other four sub-indexes improved slightly but stayed in contraction, with finished stocks falling sharply. Steel said the fall in stocks suggested manufacturers were destocking to improve their position. "This volatility highlights just how difficult it is for manufacturers to forecast their order book at present." Steel said momentum has slowed dramatically in the economy in the second quarter and the economy needs more help via lower interest rates. BusinessNZ director Catherine Beard said the positive start to the year was being undone, and familiar issues remained the key challenges to the sector. "Manufacturers report a major slowdown due to weak consumer demand, high living costs, and economic uncertainty. "Falling construction activity, rising input costs, and global instability are reducing orders and cashflow, while supply chain issues add further pressure," she said. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Scoop
10-07-2025
- Business
- Scoop
Relevant Skills In Short Supply
Legislation aimed at improving NZ's vocational education and training system needs to focus on delivering the right skills needed for business and employment growth, BusinessNZ says. BusinessNZ says New Zealand's new vocational education system should not be dominated by polytechnics to the detriment of work-based training and should focus on delivering better-skilled graduates who are more likely to get a job. BusinessNZ's submission to the Education & Workforce Select Committee on the Education and Training (Vocational Education and Training System) Amendment Bill says many of the skills that people currently get trained in are not the skills needed by business, and this is holding back graduates from successfully gaining employment - an industry-led, government-enabled vocational system for setting standards is required, to allow for more relevant, up-to-date skills to be taught. The Bill also allows for a training levy to be imposed on businesses, however BusinessNZ says its members strongly oppose this provision, as they believe the system first requires significant improvement to achieve the business and employment outcomes required from vocational training.
Scoop
08-07-2025
- Business
- Scoop
Business Gives Clear Backing To RSB
Minister for Regulation Regulation Minister David Seymour is welcoming BusinessNZ's strong support for the Regulatory Standards Bill as a means to deal with red tape and regulation. 'After all the misinformed opposition we've heard, the people who get up in the morning to make an honest buck and deliver goods and services to New Zealanders want red tape and regulation dealt to and believe this Bill will help them do that. 'Submitting on the Bill at select committee today, BusinessNZ said it was an important step towards improving the quality of regulation and reducing the compliance burden on businesses by putting more scrutiny on politicians when law is made. 'The academics who have been so loud about this Bill are so far removed from reality partly because many of Parliament's damaging laws don't frustrate their ability to make a living. If they were held back by red tape and regulation on a daily basis, like many businesses are, they would support this Bill. 'Too often, politicians find regulating politically rewarding, and we need to make it less rewarding by putting more sunlight on their activities. 'The Bill doesn't stop politicians or their officials making bad laws, but it makes it transparent that they're doing it. It makes it easier for voters to identify those responsible for making bad rules. Over time, it will improve the quality of rules we all have to live under by changing how politicians behave. 'In a high-cost economy, regulation isn't neutral – it's a tax on growth. This Government is committed to clearing the path of needless regulations by improving how laws are made.'
Scoop
08-07-2025
- Business
- Scoop
Sound Law-Making Needed
Sound law-making is needed for NZ to attract investment and achieve economic growth, BusinessNZ says. Chief Economist John Pask presented BusinessNZ's submission on the Regulatory Standards Bill to the Finance and Expenditure Select Committee today. He said the Bill was an important step towards improving the quality of regulation and reducing the compliance burden on businesses. "While Parliament is sovereign and can change legislation at any time it sees fit, there is benefit from placing appropriate scrutiny on decision-makers when law is made," Mr Pask said. "This Bill is not a silver bullet, but it is another good tool in the toolbox to improve the quality of regulation in NZ." He said it was important that the Bill more clearly covered regulatory takings, where an individual or business had their property restricted or confiscated by regulation, and provided for the principle of compensation in such cases. BusinessNZ recommends that scrutiny of local government regulation and Private Members Bills should also be provided for in the Bill, as well as scrutiny of central government legislation.
Scoop
23-06-2025
- Business
- Scoop
BusinessNZ Planning Forecast: Improving Forecast For Some Areas
The BusinessNZ Planning Forecast for the June quarter indicates the NZ economy will likely grow at nearly 3% by 2027, however it is facing strong headwinds caused by international and domestic issues. BusinessNZ economist John Pask says the uncertain, rapidly-changing international environment is affecting New Zealand's trade and economic prospects. "Not just war and threats of war, but also threats to trade and the international trade rules-based order are bringing uncertainty and caution. "NZ is a trading nation, linked to the rest of the world by key markets, supply chains and global investment flows, and vulnerable to economic shocks and international tensions. Forecasts of future growth will be heavily conditional on world events," Mr Pask said. "Domestically, there is some good news, as statistics indicate GDP improvement, inflation is still contained, lower interest rates are reducing the pressure on businesses and households, dairy and meat prices are positive, and the Government's moves to allow greater deductions on business purchases and address poor regulation are all positive." The BusinessNZ Economic Conditions Index (ECI), a measure of NZ's major economic indicators, sits at 8 for the June 2025 quarter, an improvement of 2 on the previous quarter, and an improvement of 12 on a year ago. An ECI reading above 0 indicates that economic conditions are generally improving overall; below 0 means economic conditions are generally declining. The full BusinessNZ Planning Forecast for the June quarter is on The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.
