FX.co ★ NZ Manufacturing Activity Hits 3-Year High in December

In December, the BusinessNZ Performance of Manufacturing Index (PMI) for New Zealand increased to 56.1, up from 51.4 in November, reaching the highest activity level since December 2021. This result concluded a year where eight out of twelve months saw sector expansion, indicating steady growth. All five sub-indexes were in growth territory, with New Orders leading at 59.8—its highest since July 2021. Meanwhile, Production rose to 57.4, and Employment rebounded to 53.8. Manufacturers' sentiment also improved, with 57.1% of participants reporting favorable conditions, up from 54.4% in November and 45.9% in October. Growth was primarily driven by seasonal Christmas demand, which enhanced domestic sales, orders, and temporary workloads. Further contributing factors included stronger business and consumer confidence, increased export and forward orders, and benefits from new customers, products, and infrastructure projects.