Strong quarter as manufacturing leads growth

New Zealand’s manufacturing sector was the single biggest driver of economic growth in the March 2026 quarter, growing 1.9 percent and powering the country’s start to 2026, Small Business and Manufacturing Minister Cameron Brewer says.

“Manufacturing was the largest contributor to economic growth in the March quarter. That tells you just how much this sector matters to New Zealand,” Mr Brewer says.

Statistics New Zealand figures show GDP grew 0.8 percent, with manufacturing up 1.9 percent, led by a 4.0 percent lift in transport equipment, machinery and equipment manufacturing.

“That growth is being driven by world-leading firms like Dawn Aerospace and Rocket Lab, medtech manufacturers like Fisher and Paykel Healthcare, and the specialist firms building the components that go into them,” Mr Brewer says.

“This is exactly what I’ve been seeing on the factory floor around the country: hard-working, innovative Kiwis making world-beating products, lifting productivity and pushing into new markets.

Manufacturing contributes around 8 percent of GDP and employs more than 220,000 people.

“Our Manufacturing Productivity Advisory Group, who I meet with regularly, tell me forward orders are strong. They’re a great example of industry and government working together, as is the outstanding work Advancing Manufacturing Aotearoa is doing to champion the sector,” Mr Brewer says.

“Our priority is to back manufacturers to invest and grow. That’s what Investment Boost is designed to do, letting businesses deduct a chunk of new capital investment upfront so they can buy the machinery and equipment that lifts productivity, exactly the kind of activity we’re seeing in this data.

“When manufacturing grows, the whole economy benefits. This is all part of the Government’s plan to fix the basics and build the future, with a sector that’s leading New Zealand’s recovery.”