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New Zealand's manufacturing sector has expanded to its highest value since August 2022, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI),
The seasonally adjusted PMI for February rose 2.2 points from January to 53.9, and was above the average of 52.5 since the survey began - though sentiment was more negative.
A PMI reading above 50 indicates that manufacturing was generally expanding, while anything below 50 indicated a contraction.
Negative comments during February focused on an ongoing issue around a lack of orders, as well as sluggish sales.
Still, BusinessNZ director Catherine Beard said that the February result was a "welcome sight".
"All sub-index values were again in expansion during February."
The key sub-index results for production (52.4) and new orders (51.5) were both the highest values recorded since August 2022.
Employment (54) rose a further 3.2 points from January and was at its highest value since September 2021.
Finished stocks (54.1) and deliveries (56.2) experienced notable improvements.
However, the proportion of negative comments from respondents stood at 59.5 percent in February, up from 57.7 percent in January, 59 percent in December and 56 percent in November.
BNZ senior economist Doug Steel said the overall improvement in expansion suggested the broader economy was turning for the better.
"Indeed, it indicates the pickup may be a bit faster than we are currently forecasting.".
However, he said the improvement in activity was coming from a weak base, with weak labour market conditions and unemployment relatively elevated.
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