Manufacturing growth spreads across the sector
New Zealand's manufacturing sector has now expanded for 14 months in a row, with new data showing growth spreading across more of the industry, Small Business and Manufacturing Minister Cameron Brewer says.
The BNZ - BusinessNZ Performance of Manufacturing Index (PMI) came in at 53.1 for August, above the survey's long-term average of 52.5. A reading above 50.0 shows the sector is expanding.
While the index eased from 54.3 in July, BNZ Senior Economist Doug Steel said the three-month average continues to rise, showing the industry is 'performing well through monthly volatility'. The three-month average now sits at 55.8, its highest level since July 2021.
"Manufacturing has now grown for more than a year straight, and what's really encouraging is how widely that growth is spreading. More parts of the industry, and more parts of the country, are getting busier," Mr Brewer says.
Every main industry group in the survey expanded in August. Food and beverage, textiles and clothing, and non-metallic mineral products such as glass and concrete all moved from contraction into growth. All four regions also recorded expansion, for the first time since March.
New Orders lifted to 54.9, up from 53.6 in July, pointing to more work in the pipeline. Production remained solid at 54.2, and both sit above their long-term averages.
"Orders picking up means more work coming through the factory door. When manufacturers get busy, they need to invest to keep up, and that's exactly what Investment Boost is for. It lets them buy the machinery and equipment that lifts productivity," Mr Brewer says.
The manufacturing sector directly employs more than 220,000 people, contributes around eight per cent of GDP, and accounts for around 60 per cent of New Zealand's goods exports. BNZ said August's result points to positive momentum for the economy in the September quarter.
"There's still plenty of global uncertainty and cost pressure out there, but our manufacturers keep delivering. They're outpacing Australia, the United Kingdom, the Eurozone and China, and running ahead of the global average," Mr Brewer says.
"Kiwi manufacturers are doing the hard yards, and this Government is backing them. This is all part of the Government's plan to fix the basics and build the future, with a manufacturing sector that's growing, investing and taking on the world."
Notes to editor:
- The BNZ - BusinessNZ Performance of Manufacturing Index (PMI) for August 2026 can be found on the BusinessNZ website.
- A PMI reading above 50.0 indicates the sector is generally expanding; below 50.0 indicates contraction.
- The PMI has been in expansion for 14 consecutive months, since July 2025.
- Seasonally adjusted PMI readings (latest revised series): August 2025 (50.6), April 2026 (50.5), May 2026 (51.5), June 2026 (60.1), July 2026 (54.3), August 2026 (53.1).
- Three-month average of the seasonally adjusted PMI (June to August 2026): 55.8, the highest since July 2021.
- August 2026 sub-indices: New Orders (54.9), Production (54.2), Deliveries (52.6), Finished Stocks (56.4), Employment (50.0).
- Regional results for August 2026 (unadjusted): Northern (50.6), Central (50.7), Canterbury (57.8), Otago (62.9).
- International comparison (J.P. Morgan Global Manufacturing PMI, 1 September 2026): Japan 54.9, United States 53.9, New Zealand 53.1, Eurozone 52.7, Australia 52.0, United Kingdom 51.7, China 51.5. Global reading 52.3.
