The BusinessNZ Performance of Manufacturing Index (PMI) in New Zealand rose to 52.8 in July from 48.8 in June, returning to expansion territory after two consecutive months of contraction. All five main sub-indices showed growth, led by New Orders (54.2) and Production (53.6), both reaching their highest levels since 2022. Finished Stocks (51.8), Deliveries of Raw Materials (51.9), and Employment (50.1) also expanded, with employment rising just above the no-change mark following two months of decline. Despite the rebound, 58.6% of respondents reported negative conditions, citing weak demand, rising costs, and economic uncertainty fueled by tariffs, slow construction, and soft consumer spending. Still, manufacturers remain cautious, often ordering only what is immediately needed.