New Zealand’s manufacturing sector showed further improvement in October, with BusinessNZ PMI rising from 50.1 to 51.4, marking a fourth straight month above 50. While still below the long-term average of 52.4, the sector is now experiencing its most sustained period of expansion in three years, hinting that the worst of the downturn may be behind it.
The details were encouraging: production improved from 50.5 to 52.0. New orders jumped from 50.5 to 54.9, the strongest pace since August 2022 and a key sign that demand conditions are firming. Employment remained in contraction at 48.1, up from 47.7, but even that component showed stabilization after six months of declines.
BusinessNZ’s Catherine Beard said October brought “more signs of life” after months of stagnation. The share of negative respondent comments fell from 60.2% to 54.1%, with many firms reporting stronger orders, seasonal demand, new customers, and productivity gains driven by process improvements and automation.
