Manufacturing Snapshot
Firm February
The Performance of Manufacturing Index (PMI) was essentially unchanged at 55.0 in February. It has hovered around this level since December and suggests activity in the sector is growing at a decent clip.
Improved demand
Looking under the hood, the PMI subcomponents provide further evidence that the manufacturing sector started 2026 well. The new orders and production indices, at 57.6 and 56.7 respectively, are meaningfully above their long run-averages.
Energy prices jump up
As for the conflict in the Middle East, it is impossible to know how it will all end up. So, it is challenging to assess impacts on the New Zealand economy.
Uncertainty too
The associated economic uncertainty is also not helpful. Chaos in the Middle East is happening at a time when domestic activity was starting to pick up, but is both fragile and vulnerable, and inflation is already above 3%.
