Source: Radio New Zealand
123rf
- Manufacturing activity leaps 4.4 points to 56.1 – above 50 is expansion.
- Highest level of activity since December 2021.
- All five sub-indexes are in expansion – including employment.
- BNZ sees upside risks to Q4 GDP.
Manufacturing activity leapt higher in December to its best reading in four-years, reinforcing expectations of a continued economic recovery.
The BNZ-BusinessNZ Performance of Manufacturing Index (PMI) surged by 4.4 points to 56.1 – its best reading in four years.
It was the strongest manufacturing activity since December 2021, and comfortably above the long‑term survey average of 52.5.
A reading above 50 indicated the sector was expanding.
BusinessNZ’s director of advocacy Catherine Beard said it was a welcome way to finish 2025, noting that eight of the past 12 months showed some level of expansion.
“All five sub-index values were in expansion during December,” she said. “This was led by new orders (59.8), which was at its highest level of activity since July 2021.”
“Production (57.4) also showed a significant lift in activity, while employment (53.8) continued to recover after a number of months exhibiting declines during 2025.”
The proportion of positive comments about the future lifted to 57.1 percent, with seasonal Christmas demand, stronger export activity, and increased forward orders helping drive the gains.
BNZ senior economist Doug Steel described the result as a “ripsnorter”.
He said the latest figures reinforced BNZ’s view that the economic recovery actually began in the final months of the second quarter last year.
Steel noted that all the sub index readings were now running above average.
He said there was more to the economy than just one survey, but taken together with other recent data, the economic recovery was gathering momentum, and BNZ saw upside risks to its fourth quarter economic growth forecasts.
“It’s not out of the blue – we did expect some growth, but this is suggesting it’s coming through with a bit of gusto,” Steel said.
“At face value, it suggests upside risk to the positive view we already have for manufacturing and near-term GDP growth forecasts.”
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
