Manufacturing Sector Rebounds as Economic Turnaround Gains Momentum

Economic Growth Minister Nicola Willis welcomed the uplift, citing it as a positive indicator that the economy is beginning to rebound.

The New Zealand manufacturing sector has shown promising signs of recovery, marking its first expansion in nearly two years. Economic Growth Minister Nicola Willis welcomed the uplift, citing it as a positive indicator that the economy is beginning to rebound.

According to the BNZ-Business NZ Performance of Manufacturing Index (PMI), activity rose from 46.2 in December to 51.4 in January, the highest level since September 2022. This increase ends a 22-month period of contraction, signaling renewed confidence in the sector.

Minister Willis emphasized that while many households and businesses continue to grapple with the impacts of prolonged high inflation, elevated interest rates, and cost-of-living challenges, the PMI growth is a hopeful sign of better days ahead.

"The manufacturing sector plays a vital role in job creation and economic growth," she stated. "This latest data, alongside rising business confidence, supports our outlook for an economic recovery this year."

The rise in PMI reflects increased production and new orders, crucial indicators of manufacturing health. Industry experts note that this resurgence could drive wider economic benefits, including employment growth and stronger supply chains.

Business leaders welcomed the news but urged continued focus on policies that support sustainable growth and resilience within the manufacturing sector.

As the economic outlook brightens, hopes rise that this upward trend will extend beyond manufacturing, driving recovery across multiple industries.