New Zealand’s manufacturing sector showed modest signs of stabilization in June, with the BusinessNZ Performance of Manufacturing Index rising from 47.4 to 48.8. While still signaling contraction, the gain was underpinned by an encouraging rebound in new orders, which jumped from 45.4 to 51.2—breaking back into expansion. Employment (47.9) and production (48.6) also improved slightly, though both remained under the 50 threshold. The headline PMI remains well below the historical average of 52.5.
The proportion of negative comments from respondents held steady at 65.5% (May 64.5), with widespread concerns over weak consumer demand, high living costs, and a murky economic outlook. Input cost pressures and a drop in construction activity also continue to weigh on manufacturing sentiment.
BNZ Senior Economist Doug Steel said that despite hopes of recovery, “conditions are still very tough.” All key sub-indices remain below their long-run averages, highlighting that while some green shoots are emerging, the overall manufacturing environment is still struggling to gain traction.
 and production (48.6) also improved slightly, though both remained under the 50 threshold. The headline PMI remains well below the historical average of 52.5.){kind=link}