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New Zealand manufacturing PMI jumps to strongest since 2021
June’s PMI rose to 59.7, led by a surge in new orders and a sharp increase in production and employment, signaling stronger momentum entering the second half.
New Zealand’s manufacturing activity rebounded sharply in June, with the BusinessNZ Performance of Manufacturing Index, or PMI, jumping from 51.3 to 59.7. Action Forex said the reading marked the strongest expansion since July 2021 and was well above the index’s long run average of 52.5.
The improvement was broad based, with every major sub index in expansion territory. New orders led the gains, rising from 53.2 to 64.1, while production accelerated from 50.6 to 59.4, deliveries improved from 52.9 to 57.3, and employment climbed from 51.4 to 55.8.
Business confidence also appeared to be turning, with the result described as “hugely encouraging” by BusinessNZ Director of Advocacy Catherine Beard. She said the PMI came alongside the first clear shift toward positive business sentiment in recent months.
BusinessNZ Head of Research Stephen Toplis said the strength of the rebound was notable, aside from the post pandemic upswing in 2021, the latest reading was the strongest since May 2017. Respondents still cited challenges including Middle East tensions, elevated fuel prices, and cost of living pressures, but Action Forex noted stronger sales, fuller order books, and renewed confidence outweighed those concerns.