New Zealand manufacturing expansion nearly stalls in April, survey shows

SYDNEY, May 15 (Reuters) – New Zealand’s manufacturing index marginally expanded in April, ​but the sector’s growth ‌slowed to a six-month low as the conflict in the Middle East drove up ‌costs ​and disrupted ⁠supply chains, a ⁠survey showed on Friday.

The Bank of New Zealand-Business NZ’s seasonally adjusted Performance of ​Manufacturing Index fell to 50.5 in April, ⁠down from a ⁠revised 52.8 in ​March.

A reading above 50 indicates ​manufacturing activity is expanding, while ‌anything below that threshold points to contraction.

“Many of the comments (from businesses) focused ⁠on the effect of the war against Iran on freight and ⁠fuel ‌costs, as well ⁠as its impact ​on ‌deliveries of raw materials,” ​Business ⁠NZ’s Director of Advocacy Catherine Beard said in a statement.

(Reporting by Renju Jose in Sydney; Editing by ​Nia Williams)