New Zealand’s manufacturing sector expanded for a fourth consecutive month in October 2025, supported by a rise in new orders and improving demand.
The BNZ-Business New Zealand Performance of Manufacturing Index (PMI) for October increased by 1.3 points, reaching 51.4 compared to 50.1 in September.
A PMI reading above 50.0 signals that the manufacturing sector is expanding.
“The October result sees the PMI now boasting four consecutive months above the break-even 50 mark for the first time in three years,” BNZ senior economist Doug Steel said.
Doug noted that although the increase was modest, it was progressing in the right direction.
Meanwhile, BusinessNZ’s director of advocacy, Catherine Beard, mentioned that following two months of stagnant activity in the sector, October finally displayed renewed signs of progress.
“Four of the five sub-index values were in expansion during October, led by new orders, which showed its highest level of expansion since August 2022.”
Production and finished stocks increased, but employment remains in contraction, with a reading of 48.1. Steel indicated that manufacturers continue to reduce their workforce, noting that employment typically lags behind other indicators during economic recoveries.
The percentage of negative feedback from manufacturers declined to 54.1% in October, down from 60.2% in September and 58.1% in August.
The sector experienced an increase in orders and stronger demand, driven by seasonal factors, the acquisition of new customers and products, and emerging signs of renewed economic confidence.