New Zealand’s manufacturing sector showed further expansion during November, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for November was 51.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.2 points higher than October, but still below the average of 52.4 since the survey began.
BusinessNZ’s Director of Advocacy, Catherine Beard, said that in the current economic climate, any move that sees activity both positive and higher than the previous month is a welcome step.
“Four of the five sub-index values were in expansion during November, lead by Production (52.8). Employment (52.4) was in positive territory for the first time since April 2025, while New Orders (51.9) remained in expansion, albeit down from last month. In contrast, Deliveries (49.0) fell into contraction for the first time since June 2025.
The proportion of negative comments from respondents stood at 45.6% for November, down from 54.1% in October and 60.2% in September. Manufacturers reported a lift in demand driven by seasonal Christmas activity, improving economic conditions and rising customer confidence. Increased orders, both domestic and overseas, along with stronger construction activity, new customers, and product launches contributed to a more positive outlook.
BNZ’s Senior Economist Doug Steel said that “the PMI has seemingly settled above the breakeven 50 mark. Nonetheless, we want to see more upbeat outturns from this survey and the Performance of Services Index (due Monday), to provide us with some comfort that the expected lift in Q3 GDP can be sustained into Q4”.
