The BusinessNZ Performance of Manufacturing Index (PMI) in New Zealand rose to 48.8 in June from 47.5 in May, marking a second straight month of contraction following four consecutive months of growth. While the modest uptick suggests a slower pace of decline, the strong start to the year is increasingly being offset by mounting challenges, as manufacturers struggle to expand across most areas of their operations. Of the five main sub-indexes, four weakened, with only New Orders showing growth at 51.2, hinting at some near-term optimism. Production inched up to 48.6, nearing stabilization, but Finished Stocks fell to a seven-month low of 46.9, and Employment remained in contraction at 47.9. Sentiment among respondents stayed cautious, with over 65% of comments expressing a negative outlook. Key concerns included weak consumer demand, high living costs, reduced construction activity, and global uncertainty, all weighing on orders and cash flow.