Two main reasons for which the New Zealand manufacturing is facing the downfall are said to be the increase in the value of NZ dollar, which is acting like a pest for manufacturing for now, and the second reason is considered to be the low PMI value for September.

This contraction has another added meaning to it that though north region is slimming down, south is on expansion tour. The recordings of the Business NZ Performance of Manufacturing Index have showed that in comparison to August, the activity level at the front of manufacturing got slowed down in September by 1.9 points, and was at 47.4 points. A sector could only be declared to be on growth process if its overall PMI level is over 50.

The NZ dollar, which is on the rise these days, is acting as a shield for the country as well as for its economy against disturbing economic crisis tides, but for manufacturing it is acting as a biggest villain at this point of time. Even little bit of fluctuations' in any countries' currency could bring lot of alterations in their sales and production line, and same is happening with NZ.

For the first time, after March, the production index has fallen and that too at its lowest level. The Executive Director of BusinessNZ was devastated on the fact that the index has slipped so much. He further affirmed that with the Christmas round the corner, there are hopes that the index would revive.