New Zealand’s manufacturing sector returned to growth in July, with the BusinessNZ Performance of Manufacturing Index rising from 49.2 to 52.8, moving back above the historical average of 52.5.
All five sub-indices registered expansion, led by New Orders at 54.2—its highest since March 2022—and Production at 53.6, the strongest since August 2022. Finished Stocks and Deliveries of Raw Materials also posted modest growth, while Employment (50.1) edged back above the no-change level after two months of contraction.
Despite this encouraging turnaround, sentiment among manufacturers remains guarded. The share of negative comments fell to 58.6% from June’s 65.5%.
Respondents continued to highlight weak demand, rising costs, and ongoing economic uncertainty. Tariffs, subdued construction activity, and soft consumer spending were cited as key headwinds, with many firms noting delayed projects and a tendency for customers to place only essential orders.
