New Zealand's Manufacturing Sector Continues Solid Expansion
By James Glynn
SYDNEY--Activity across New Zealand's manufacturing sector expanded solidly in September, indicating that economic recovery remains intact despite rising interest rates, a looming election and a volatile global environment.
The BNZ - BusinessNZ performance of manufacturing index stood at 56.5 in September, up from 53.3 in August, marking the 15th consecutive month of expansion.
The employment index also recorded solid expansion in September at 51.8, lending hope that the country's elevated unemployment rate might soon start to fall.
The Reserve Bank of New Zealand raised interest rates for the first time in three years in July, before following it up with a another hike in September. Economists expects it to continue tightening policy in coming months.
"Respondents are still weighing up cost of living pressures, but the strength across new orders, production and finished stocks suggests there's real momentum building heading into the final quarter of the year," said Catherine Beard, BusinessNZ's Director of Advocacy.
Sentiment remained mixed despite the stronger result, with 53% of comments being negative. Firms cited high fuel prices and uncertainty ahead of an election in November as key areas of concern, Beard added.
Still, there were offsets due to pre-Christmas orders and a general improvement in demand.
Write to James Glynn at james.glynn@wsj.com
(END) Dow Jones Newswires
October 15, 2026 18:23 ET (22:23 GMT)
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