New Zealand

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New Zealand Manufacturing Growth Eases in August as Business NZ PMI Falls to 53.1

New Zealand’s manufacturing sector continued to expand in August, although the pace of growth moderated from the previous month.

The Business NZ Performance of Manufacturing Index (PMI) fell to 53.1 in August from 54.3 previously. Despite the decline, the index remained above the 50 threshold that separates expansion from contraction.
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RBNZ Raises Interest Rate to 2.75% as Inflation Remains Elevated

The Reserve Bank of New Zealand raised its Official Cash Rate by 25 basis points to 2.75% on Wednesday, matching market expectations and extending the tightening cycle after July’s increase to 2.50%.
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New Zealand Retail Sales Unexpectedly Fall 0.5% in Q2 as Core Spending Remains Resilient

New Zealand retail sales unexpectedly contracted in the second quarter of 2026, signaling softer overall consumer activity after several quarters of expansion.

Total retail sales volumes fell 0.5% quarter-over-quarter, significantly below expectations for a 0.1% increase and reversing the previous quarter’s 1.0% gain. It was the first quarterly decline since Q3 2024.

The weakness, however, was not broad across underlying consumer spending. Core retail sales, which exclude automobiles and fuel, increased 0.7%, comfortably exceeding the 0.3% forecast, although growth slowed from 1.1% previously.
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New Zealand Producer Input Prices Jump 2.9% in Q2

New Zealand producer input prices rose sharply in the second quarter of 2026, adding to signs of persistent inflationary pressure in the economy.

The Producer Price Index (PPI) Input increased 2.9% quarter-over-quarter, significantly above the 1.3% market forecast and accelerating from the previous quarter’s 1.4% increase.

The stronger-than-expected reading indicates that businesses are facing rapidly rising production costs. Because higher input costs can eventually be passed through to consumers, the data could reinforce concerns about inflation and keep pressure on the Reserve Bank of New Zealand to maintain a restrictive monetary-policy stance.
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New Zealand Retail Card Spending Rebounds 1.3% in July

New Zealand’s electronic card retail sales rebounded in July, pointing to an improvement in household spending at the start of the third quarter.

Electronic card retail sales increased 1.3% month-over-month in July, reversing the 1.3% decline recorded in June.
New Zealand Manufacturing PMI Slows to 54.3 in July

New Zealand’s manufacturing sector remained in expansion territory in July, although activity cooled substantially from the previous month.

The BusinessNZ Performance of Manufacturing Index fell to 54.3 from a revised 60.1 in June. Despite the sharp monthly decline, the index remained comfortably above the 50 threshold separating expansion from contraction.
New Zealand Inflation Accelerates in Q2, Reducing Expectations for Near-Term Rate Cuts

New Zealand’s inflation accelerated more than expected in the second quarter, strengthening the case for the Reserve Bank of New Zealand (RBNZ) to remain cautious on monetary easing.

Consumer prices rose 1.5% quarter over quarter in Q2, exceeding economists’ expectations of 1.4% and accelerating from 0.9% in the first quarter. On an annual basis, inflation climbed to 4.1%, also beating the 4.0% consensus forecast and rising sharply from 3.1% previously.

The stronger-than-expected inflation readings suggest price pressures have reaccelerated after showing signs of moderation earlier this year. With both quarterly and annual inflation moving higher, the data may reduce expectations for near-term interest rate cuts and reinforce the RBNZ’s cautious policy stance.
RBNZ Raises Interest Rate to 2.50%, Matching Expectations

The Reserve Bank of New Zealand (RBNZ) raised its official cash rate by 25 basis points to 2.50%, in line with market expectations, as policymakers continued efforts to keep inflation under control.

The decision matched economists’ forecasts of 2.50% and marked an increase from the previous policy rate of 2.25%. The latest move extends the central bank’s tightening cycle as it seeks to ensure inflation returns sustainably to its target range.
New Zealand Economy Accelerates as First-Quarter Growth Meets Expectations

New Zealand's economy expanded 0.8% quarter-over-quarter in the first quarter, matching economists' expectations and accelerating from 0.5% growth in the previous quarter.
The Reserve Bank of New Zealand left its official cash rate unchanged at 2.25%, matching both market expectations and the previous rate.
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