New Zealand Private Sector Growth Hits 3-Month High

The BusinessNZ Performance of Composite Index increased to 53.4 in September 2026 from a marginally revised 52.4 in the previous month, marking the fourth straight month of expansion. It was the highest reading since June, with manufacturing sector growth accelerating while the services sector continued to expand. Manufacturing activity expanded at a stronger pace despite pressure from high fuel prices and ahead of the general election. Meanwhile, services sector growth eased slightly as growth in new orders slowed. The sub-indices for stocks expanded faster, while activity/sales returned to expansion. In contrast, contractions were seen in supplier deliveries and employment. The latest reading highlighted that cost-of-living pressures, fuel prices, interest rates, and election uncertainty remain front of mind.

The BusinessNZ Performance of Composite Index stood at 52.5 in August 2026, unchanged from a downwardly revised figure in 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.