In February, the Performance of Manufacturing Index (PMI) lifted to 53.9 to strengthen its footing above the breakeven 50 mark.
It is important to remember that any improvement in activity is coming from a weak base. Recent official data confirmed weak manufacturing sales in Q4 last year.
New Zealand labour market conditions remain weak, with the unemployment rate relatively elevated.
In the latest Quarterly Survey of Business Opinion (QSBO), only a net 1% of manufacturing firms expected profitability to improve in the first quarter of 2025.