New Zealand September Data Shows Cooling Food Prices and Improving Manufacturing Activity

New Zealand released a batch of September economic indicators showing food price inflation flatlined and manufacturing activity accelerated sharply. Stats NZ reported the food price index held at 0.0% month-on-month in September, down from 0.3% the prior month, signaling continued relief from food cost pressures for consumers.

Electronic card retail sales showed a mixed picture: seasonally adjusted figures fell 0.4% on the month, an improvement from the prior month's 0.9% decline, while actual year-on-year sales rose 0.9%, up from 0.2% previously. Total card spending fell 0.5% month-on-month, matching the prior period's pace. The divergence between the monthly and annual readings points to a consumer spending environment that remains soft in the near term but has stabilized compared with a year ago.

The standout figure was the Business NZ PMI for September, which jumped to 56.5 from 53.3 in August. A reading above 50 indicates expansion, and the September result marks a meaningful acceleration in manufacturing activity, suggesting the sector is gaining momentum heading into the final quarter of the year.