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    In January, New Zealand’s Business NZ PMI eased to 55.2 from 56.1 previously

    by VT Markets
    /
    Feb 13, 2026
    New Zealand Business NZ’s Performance of Manufacturing Index (PMI) fell to 55.2 in January, down from 56.1 the month before. A PMI reading above 50 means manufacturing is growing. A reading below 50 means it is shrinking.

    Manufacturing Growth Slows

    Business NZ’s PMI eased to 55.2 in January from 56.1. It is still clearly above 50, so the sector is still expanding. However, this is the second month in a row that growth has slowed. That downward trend is worth watching over the next few weeks. This softer reading also makes the outlook harder for the Reserve Bank of New Zealand (RBNZ). Inflation is still the main problem. It ended 2025 at 4.5%, which is well above the RBNZ’s target band. With prices still rising too fast, the central bank is unlikely to start easing policy soon. For New Zealand dollar traders, this can limit NZD gains. A slowing economy paired with a hawkish central bank can also raise volatility. That can make option strategies such as straddles more attractive around the next RBNZ decision. If Australian data stays stronger, the odds increase that NZD could weaken versus AUD. In rate markets, the data suggests that expectations for near-term cuts may be too early. The labour market is still tight, with unemployment around 4.0%. That gives the RBNZ room to keep the Official Cash Rate higher for longer. This backdrop may support trades that expect short-term rates to stay elevated rather than fall quickly.

    Implications For Markets

    Slower manufacturing momentum is a headwind for the NZX 50, especially for manufacturers and exporters. The weaker PMI could lead analysts to cut earnings forecasts for the first half of 2026. Buying put options on the index is one way to position for a possible pullback from recent highs. Create your live VT Markets account and start trading now.

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