<\/p>\n
\nThe BNZ-Business NZ Performance of Manufacturing Index (PMI) fell 0.9 points in January to 55.2, but was comfortably above its long running average of 52.5.
\nPhoto: 123rf\n<\/p>\n
The manufacturing sector’s turnaround continued into the new year as firms recorded growth in new orders and production, while employment also grew.<\/p>\n
The BNZ-Business NZ Performance of Manufacturing Index (PMI) fell 0.9 points in January to 55.2, but was comfortably above its long running average of 52.5. A score above 50 indicated the sector was expanding.<\/p>\n
“The January PMI provides further evidence that the economy has finally turned the corner,” BNZ senior economist Doug Steel said.<\/p>\n
“It is consistent with our forecasts and a breadth of indicators suggesting decent economic growth.”<\/p>\n
All five sub-indices in the survey showed expansion.<\/p>\n
“This was led by the two key indices of production (56.6) and new orders (56.4), followed by deliveries (53.3),” BusinessNZ director of advocacy Catherine Beard said.<\/p>\n
“Employment (52.9) recorded its third straight monthly expansion, which had last occurred in the first few months of 2025,” she said.<\/p>\n
Steel said the turnaround in employment was “good news”.<\/p>\n
“When you’ve got more production and using up spare capacity… it does mean more jobs, and that’s what we see in the survey on Friday,” he said.<\/p>\n
“If you look back at last year it implies that the net labour shedding that was occurring has drawn to an end.”<\/p>\n
But despite the headline PMI index remaining strong, the survey noted the proportion of positive comments fell from 57.1 percent in December to 47.7 percent.<\/p>\n
It said some manufacturers did report weak demand, while the Christmas and summer holiday shutdowns disrupted production.<\/p>\n