Manufacturing Snapshot
Expansion continues…
Confidence that New Zealand’s manufacturing sector is growing has been further solidified. The Performance of Manufacturing Index (PMI) jumped to 56.5 in September, up from 53.3 in August.
… across the board
All subindices lifted and are above the breakeven 50 mark. Last month we noted a potential concern for high stock levels relative to other indicators. September’s results have gone a long way to allaying these concerns.
But good news doesn’t come without caution
Respondents again highlighted particular concern for fuel prices and associated cost increases, uncertainty surrounding the general election and the prospect of further increases to interest rates.
A positive story for growth
Overall, September’s PMI result is further evidence of moderate GDP growth in the second half of 2026 and supports our view that the manufacturing sector will be a positive contributor.
