New Zealand Composite PMI Returns to Expansion

The seasonally adjusted BusinessNZ Performance of Composite Index fell to 52.5 in January 2026 from a more than three-year high of 53.9 in the previous month. Manufacturing output remained strong amid a slight slowdown in the service sector. Output, new orders, and employment all stayed solid despite softening. Also, inventories rose at a milder pace and delivery times shortened slightly.

New Zealand’s seasonally adjusted BusinessNZ Performance of Composite Index rose to 53.7 in December 2025 from 48.8 in November, marking a return to expansion. The services sector strengthened the most in six months, supported by seasonal Christmas and summer demand, improving consumer confidence driven by lower interest rates, stronger tourism, new contracts and bookings, and early signs of broader economic recovery and investment activity. In contrast, manufacturing activity expanded for a fifth straight month. Total output expanded, while employment remained soft. Meanwhile, new orders continued to grow and supplier delivery times improved slightly but remained below the breakeven level.

New Zealand’s seasonally adjusted BusinessNZ Performance of Composite Index fell to 48.8 in November 2025 from a downwardly revised 50.0 in the prior month, marking its lowest level since August and signaling a return to contraction. The services sector weakened the most in six months, reflecting a challenging economic backdrop marked by subdued consumer confidence, high living costs, elevated inflation and interest rates, and restrained household spending. In contrast, manufacturing activity expanded for a fifth straight month. Total output contracted for a fourth consecutive month, while employment remained soft. Meanwhile, new orders continued to grow, albeit at a slower pace, and supplier delivery times dropped further, in line with easing demand conditions.