According to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI), New Zealand’s manufacturing sector expanded at a notably stronger rate in September.
The seasonally adjusted PMI for September was 56.5 (where a reading above 50.0 indicates that the manufacturing sector as a whole is expanding, and a reading below 50.0 indicates a contraction). This was up 3.2 points from 53.3 in August, comfortably above the survey’s long-term average of 52.5 and the 15th consecutive month in expansion!
BusinessNZ’s Director of Advocacy, Catherine Beard said: “It’s great to see manufacturing expand at a much stronger rate in September. Employment also picked up, now back in expansion at 51.8, which is an encouraging sign that firms are perhaps starting to feel more confident about adding staff. Respondents are still weighing up cost of living pressures, but the strength across New Orders, Production and Finished Stocks suggests there’s real momentum building heading into the final quarter of the year.”
Sentiment remained mixed despite the stronger result, with 53% of comments being negative. Respondents continued to point to fuel prices and uncertainty ahead of the election, though a solid number cited seasonal upticks, pre-Christmas orders and improving demand as a more positive note.
Employment was the weakest sub-index at 51.8, though still comfortably in expansion and up from 50.0 in August, while Finished Stocks (59.0) and Deliveries (58.8) led the pack. Production (57.0) and New Orders (57.0) also lifted strongly from last month.
BNZ Senior Economist, Doug Steel, said “putting June’s exceptional 60.1 figure to one side, September’s read is the highest print since 2021. An impressive result considering the vast number of domestic and international headwinds currently at play.”
