BNZ – BusinessNZ
Performance of Manufacturing Index

BNZ – BusinessNZ
Performance of
Manufacturing Index

Over the top… for now

54.9

October

-1.4

Monthly Change

Expanding

Slower Rate

According to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI), New Zealand’s manufacturing sector continued to expand in October, though at a slower rate than the previous month.

The seasonally adjusted PMI for October was 54.9 (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 down 1.4 points from 56.3 in September and continues the 16 month streak in expansion.

BusinessNZ’s Director of Advocacy, Catherine Beard said: “It’s pleasing to see manufacturing continue to expand for well over a year now, even as the pace eases back from September’s strong result. The softening in New Orders and Production is worth keeping an eye on, but the Christmas build-up and steady infrastructure work suggest manufacturers are heading into the end of the year on a solid footing, even with input prices and the cost of living still weighing on many.”

Sentiment softened slighting this month, with 56.4% of comments being negative, up from 53% in September. Respondents pointed to fuel prices, cost of living and election uncertainty, though a good number cited the Christmas build-up and steady orders as a more positive note.

Employment was the weakest sub-index at 51.9, though still in expansion, while Deliveries (61.4) and Finished Stocks (58.0) led the pack. New Orders (54.3) and Production (53.9) eased from last month but remained comfortably in expansion.

BNZ Senior Economist, Doug Steel, said “Although the PMI can be volatile month to month, the broader message is clear: momentum in manufacturing is firmly positive.”

Production
53.9
Employment
51.9
New Orders
54.3
Finished Stocks
58.0
Deliveries
61.4
55.5
49.1
57.9
65.0

Catherine Beard

Director, Advocacy BusinessNZ

Manufacturing Snapshot

Manufacturing finding its stride

Improved activity in the manufacturing sector is becoming increasingly well established, as indicated by the Performance of Manufacturing Index (PMI).

Read more

Activity broadening

All subindustries expanded in October, extending the broadening momentum of recent months. Notably, the textile, clothing and footwear industry sustained its recent modest improvement.

Read more

Uncertainties stay unresolved

General Election uncertainty remained a drag for many manufactures in October. Unfortunately, this is set to linger as we await the final results and the outcome of coalition talks.

Read more

Supporting growth

Overall, October’s PMI points to sustained improvement in the manufacturing sector. This result supports our forecast of moderate growth in manufacturing through Q4, contributing to annual GDP growth of around 2% over 2026.

Read more

Doug Steel

Senior Economist, BNZ

Sponsor Statement

BNZ is delighted to be associated with the Performance of Manufacturing Index (PMI) and BusinessNZ.

This association brings together the significant experience of leading business advocacy body BusinessNZ, and business finance specialist BNZ.

We look forward to continuing our association with BusinessNZ and associated regional organisations, and to playing our part in the ongoing development of the New Zealand manufacturing sector.

PMI Time Series Table

The results are seasonally adjusted

National Indicies Oct 2025 Jun 2026 Jul 2026 Aug 2026 Sep 2026 Oct 2026
BNZ – BusinessNZ PMI 52.0 60.0 54.4 53.2 56.3 54.9
Production 53.5 59.2 57.1 54.0 56.6 53.9
Employment 48.7 55.8 52.0 50.0 51.8 51.9
New Orders 55.1 64.3 53.7 55.1 56.8 54.3
Finished Stocks 51.4 56.9 53.6 56.6 59.0 58.0
Deliveries 50.7 57.3 55.7 52.2 59.1 61.4

BNZ - BusinessNZ PMI Time Series

January 2020 – October 2026

International Results

J.P. Morgan Global Manufacturing PMIâ„¢

02 Nov 2026
52.6
USA
54.9
UK
52.8
Eurozone
52.7
China
52.0
Japan
53.3
Australia
49.6
NZ
54.9

About The PMI

The BNZ – BusinessNZ Performance of Manufacturing Index is a monthly survey of the manufacturing sector providing an early indicator of activity levels.

A PMI reading above 50 points indicates manufacturing activity is expanding; below 50 indicates it is contracting.

The main PMI and sub-index results are seasonally adjusted.

Technical Contact

Max Doyle
Economist, BusinessNZ

[email protected]

Our Contributors

The BNZ – BusinessNZ PSI contains data obtained through BusinessNZ’s regional organisations