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New Zealand PMI manufacturing 47.5 in Jun-23

- The New Zealand PMI manufacturing index for June 2023 contracted, reaching a reading of 47.5, the lowest level since August 2021.
- The PMI decrease of 2.41 points below the one-year average indicates a significant decline in manufacturing performance compared to recent times.

RBNZ: May-23

• The New Zealand economy is experiencing a slowdown in domestic economic activity and contraction, mainly due to tightening monetary conditions and an evolving housing market, compounded by global trade disruptions.
• The Monetary Policy Committee has increased the Official Cash Rate from 5.25% to 5.50% to control inflation and support sustainable employment, given the current economic conditions and potential inflationary pressures.
• Interest rates are expected to remain at a restrictive level for the foreseeable future, reflecting the ongoing efforts to manage inflation and support economic stability and growth.

New Zealand CPI inflation 6.7% y-o-y in Q1-23

- New Zealand's CPI inflation rate decreased to 6.7% year-on-year in Q1-23 from the previous quarter's 7.2%.
- Despite the decrease, the current inflation rate remains significantly higher than both the one-year average and the long-run average.