New Zealand’s manufacturing sector recorded its strongest monthly expansion in nearly five years, with the latest BNZ–BusinessNZ Performance of Manufacturing Index (PMI) rising sharply in June, according to the New Zealand Government.
Small Business and Manufacturing Minister Cameron Brewer said the PMI increased to 59.7 in June from 51.3 in May, marking its highest level since July 2021 and remaining well above the survey’s long-term average of 52.5. A reading above 50 indicates the manufacturing sector is expanding.
“This is a very strong result. Order books are filling up, production is climbing, and manufacturers are hiring again,” Brewer said.
According to the Government, all components of the PMI remained in expansion during June. New Orders recorded the strongest result at 64.1, followed by Production at 59.4 and Employment at 55.8, indicating increased activity and hiring across the sector.
The Government also cited comments from BNZ Head of Research Stephen Toplis, who said analysts were “staggered by the extent the Index has jumped.”
Brewer said the latest figures build on manufacturing’s contribution to New Zealand’s economic performance in the March quarter.
“Manufacturing is one of the powerhouses of our economy, and right now it’s running hot. This follows the sector being the single biggest driver of economic growth in the March quarter, so the momentum is real and it’s building,” he said.
The Government said manufacturing directly employs more than 220,000 people, contributes around eight per cent of New Zealand’s gross domestic product, and accounts for 60 per cent of the country’s exports.
Brewer said the Government’s Investment Boost initiative is intended to help manufacturers respond to growing demand by investing in new equipment and technology.
“When order books fill up like this, manufacturers need to invest to keep pace, and that’s what Investment Boost is for, letting them buy the machinery and equipment that lifts productivity,” he said.
He also said New Zealand manufacturers are currently outperforming those in several major economies.
“Our manufacturers are outpacing every major economy right now, including the United States, China, Japan, the United Kingdom and Australia,” Brewer said.
“Kiwi manufacturers are showing what they can do when they get a Government that backs them. This is all part of the Government’s plan to fix the basics and build the future.”
