The Performance of Manufacturing Index (PMI) lifted sharply from 46.2 to 51.4 in January. After 22 long months in contraction, it has moved back above the breakeven 50 mark at last.
In November, the Reserve Bank of New Zealand (RBNZ) noted manufacturing as one of the sectors of the economy most dampened by high interest rates.
Around 40% of manufacturing output is exported directly, with more exported indirectly as an input into production in other sectors.
Globally, the key focus is the US, as uncertainty about the prospective Trump policy mix reigns. While the net effect of the tariffs is unclear, uncertainty breeds caution.