New Zealand’s BusinessNZ Performance of Manufacturing Index eased to 54.9 in October 2026, down from 56.3 in September, but still extended its run of expansion to 16 consecutive months. Survey respondents highlighted rising fuel costs, broader cost-of-living pressures, and uncertainty around the election as key concerns. At the same time, many noted the Christmas build-up and a steady flow of orders as important supports.
Employment remained the softest component, at 51.9, yet continued to signal modest growth. In contrast, Deliveries (61.4) and Finished Stocks (58.0) were the strongest sub-indices. New Orders (54.3) and Production (53.9) both edged down from the previous month but stayed firmly in expansion territory. Overall, the Christmas-driven uplift in demand and ongoing infrastructure work indicate that manufacturers are likely to close out the year on a solid footing, even as higher input costs and cost-of-living pressures continue to weigh on the sector.