The New Zealand manufacturing sector has experienced its first expansion in nearly two years, signaling a promising shift in the country’s economic trajectory. Economic Growth Minister Nicola Willis praised the recent upturn, highlighting it as a key indicator that the economy is on the mend.
The latest figures from the BNZ-Business NZ Performance of Manufacturing Index (PMI) reveal a notable increase in manufacturing activity, with the index rising from 46.2 in December to 51.4 in January. This marks the highest level since September 2022 and breaks a 22-month streak of contraction, suggesting a renewal of confidence within the sector.
Minister Willis acknowledged that many households and businesses continue to feel the strain of high inflation, elevated interest rates, and rising living costs. However, she emphasized that the PMI’s positive growth offers a glimmer of hope for a broader economic recovery. “The manufacturing sector is a cornerstone of job creation and economic development,” Willis commented. “This data, coupled with increasing business confidence, reinforces our outlook for recovery in the year ahead.”
The rise in the PMI reflects both an increase in production levels and a surge in new orders, which are vital signs of a healthy manufacturing environment. Experts suggest that this rebound could yield widespread economic benefits, from employment growth to more resilient supply chains.
While the positive development was welcomed by business leaders, there were calls for ongoing government efforts to nurture sustainable growth within the sector. Industry representatives stressed the importance of policies that promote long-term stability and resilience in manufacturing.
As the economic outlook improves, there is growing optimism that this resurgence in the manufacturing sector will set the stage for a broader recovery across other industries, further boosting New Zealand’s economic prospects.
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