New Zealand’s manufacturing sector has recorded its 14th consecutive month of expansion, with August data indicating that growth is becoming more widespread across the industry, according to the New Zealand Government.
The BNZ-BusinessNZ Performance of Manufacturing Index (PMI) recorded a reading of 53.1 in August, above its long-term average of 52.5. A reading above 50 indicates expansion, although the result was down from 54.3 in July.
BNZ Senior Economist Doug Steel said the three-month average continued to rise, reaching 55.8, its highest level since July 2021, indicating the sector was “performing well through monthly volatility”.
Small Business and Manufacturing Minister Cameron Brewer said the latest figures showed broader growth across the sector.
“Manufacturing has now grown for more than a year straight, and what’s really encouraging is how widely that growth is spreading,” Brewer said.
All five main industry groups surveyed recorded expansion in August. Food and beverage, textiles and clothing, and non-metallic mineral products, including glass and concrete, moved from contraction into growth.
All four regions covered by the survey also recorded expansion, the first time this has occurred since March.
New Orders rose to 54.9 from 53.6 in July, while Production remained at a relatively strong level of 54.2. Both measures were above their respective long-term averages.
Brewer said the increase in orders could support further investment by manufacturers, pointing to the Government’s Investment Boost initiative as a measure intended to support spending on machinery and equipment.
The manufacturing sector directly employs more than 220,000 people, contributes around eight per cent of New Zealand’s GDP and accounts for about 60 per cent of the country’s goods exports, according to the Government.
Brewer acknowledged that manufacturers continued to face global uncertainty and cost pressures, while highlighting the sector’s performance relative to other major economies.
“There’s still plenty of global uncertainty and cost pressure out there, but our manufacturers keep delivering,” he said.
