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RBNZ: Aug-23

• The MPC retains the OCR at 5.50% in response to persistently high core inflation, aiming to guide consumer price inflation within the 1 to 3% target range.
• Global economic headwinds, especially from China, coupled with internal demand-supply dynamics, necessitate sustained restrictive monetary measures.
• Despite existing economic challenges, New Zealand's financial system exhibits resilience, with monetary policy effectively addressing both inflation and employment objectives.

New Zealand PMI manufacturing 46.3 in Jul-23

- The New Zealand PMI for manufacturing declined to 46.3 in Jul-23, reflecting a contraction in the sector and reaching its lowest level since Aug-21.
- The reading of 46.3 is also significantly below the one-year average, indicating a sustained period of challenges for the manufacturing sector in New Zealand.

New Zealand PMI manufacturing 46.1 in Aug-23

- The New Zealand PMI manufacturing registered a contraction in August 2023 with a reading of 46.1, the lowest level observed since August 2021 and 2.62 points below the one-year average.
- The decline in the PMI indicates a slowdown in the manufacturing sector, potentially affecting employment, consumer spending, and overall economic growth.

New Zealand unemployment rate 3.6% (consensus 3.5) in Q2-23

- New Zealand's unemployment rate increased slightly to 3.6% in Q2-23, surpassing the consensus estimate of 3.5% and reaching the highest level since Q2-21.
- Despite the increase, the unemployment rate remains 2.20 percentage points below the long-run average, indicating ongoing labor market challenges. Meanwhile, employment growth of 0.97% q-o-q in Q2-23 exceeded expectations, suggesting a stronger recovery in job creation.