New Zealand Manufacturing PMI Surges to Strongest Since 2021 as Orders Soar

New Zealand’s manufacturing sector posted a powerful recovery in June, with the BusinessNZ Performance of Manufacturing Index (PMI) jumping from 51.3 to 59.7, well above its long-run average of 52.5. The reading marked the strongest expansion since July 2021, highlighting a broad improvement in activity after the sector spent much of the past two years struggling with weak demand and heightened uncertainty.

The rebound was broad-based, with every major sub-index firmly in expansion territory. New orders led the way, surging from 53.2 to 64.1, pointing to a strengthening pipeline of future work. Production also accelerated sharply, rising from 50.6 to 59.4, while employment climbed from 51.4 to 55.8, suggesting manufacturers have become more confident about hiring. Deliveries improved from 52.9 to 57.3 and finished stocks increased from 54.3 to 56.9, reinforcing the view that the recovery is gaining traction across the supply chain rather than being driven by a single component.

BusinessNZ Director of Advocacy Catherine Beard described the result as “hugely encouraging,” noting it was accompanied by the first clear shift toward positive business sentiment in recent months. While respondents continued to cite Middle East tensions, elevated fuel prices and cost-of-living pressures as challenges, these concerns were outweighed by reports of stronger sales, fuller order books and renewed confidence. BNZ Head of Research Stephen Toplis said he was “staggered” by the strength of the rebound, noting that outside of the post-pandemic recovery in 2021, the latest reading was the strongest since May 2017. The sharp improvement suggests New Zealand’s manufacturing sector has entered the second half of the year with considerably stronger momentum than many had anticipated.

Full NZ BNZ PMI release here.