NZ: Shrinking manufacturing activity – TD Securities

Analysts at TD Securities note that the New Zealand’s Manufacturing PMI fell below 50 in July to hit the lowest since Aug 2012 with the most concerning metric the slump in the employment gauge.

Key Quotes

“The RBNZ’s 50bps cut may help to allay near term concerns, but should the PMI contract further, then the odds of the RBNZ needing to cut again by year end should become more likely.”