New Zealand Private Sector Grows for 3rd Month

The BusinessNZ Performance of Composite Index stood at 52.5 in August 2026, unchanged from the previous month. It marked the third consecutive month of expansion in the private sector, though manufacturing growth eased to a three-month low, while the services sector rose the most in eight months. Manufacturing activity expanded despite continued pressure from high fuel prices. Meanwhile, the services sector recorded its third consecutive expansion, with two of the five sub-indices in expansion territory. New orders recorded the strongest reading, followed by stocks. By contrast, contractions were seen in supplier deliveries, employment, and activity/sales. The latest reading highlighted that cost-of-living pressures, interest rates, and election uncertainty remain front of mind for many.

The BusinessNZ Performance of Composite Index declined to 52.6 in July 2026 from an upwardly revised 53.8 in the previous month, which was the fastest expansion in six months. It marked the second consecutive month of expansion in the private sector, though growth in both the services sector and manufacturing eased. Manufacturing activity expanded despite continued pressure from high fuel prices, with all manufacturing sub-indices rising at a softer rate. Meanwhile, the services sector recorded its second consecutive expansion, as three of the five sub-indices were in expansion territory, with new orders recording the strongest reading, although at a softer pace, followed by stocks, while sales rebounded. By contrast, contractions were seen in supplier deliveries and employment. The latest reading highlighted that cost-of-living pressures, fuel and petrol prices, and rising interest rates remain front of mind for many, with a number also citing uncertainty ahead of the election.

The BusinessNZ Performance of Composite Index increased to 53.6 in June 2026 from an upwardly revised 49.9 in the previous month. It marked the first expansion in the private sector since January and the strongest growth since December 2025, as the services sector returned to expansion while manufacturing grew at its fastest pace since July 2021. Manufacturing activity expanded despite continued pressure from high fuel prices, with all manufacturing sub-indices remaining in expansion territory. Meanwhile, the services sector returned to growth as new orders and supplier deliveries moved back into expansion. In contrast, activity/sales, stocks, and employment remained in contraction territory, although at a slower pace. However, the recovery appears tentative rather than the strong rebound seen in the PMI this month.