Manufacturing activity is at its highest since July last year according to a leading measure of confidence in the sector.
The BNZ - Business New Zealand Performance of Manufacturing Index for October is at 59.3, a 0.8 increase on the September figure.
Anything over 50 indicated manufacturing was expanding.
The index had been steadily climbing for five months and more than two thirds of businesses surveyed were feeling positive.
Business NZ executive director for manufacturing Catherine Beard said the most encouraging aspect was the growth in employment last month, the highest since the survey began in 2002.
"All the manufacturers in the survey get asked about employment intentions and if they say that they are going to be employing, that contributes to that expansion figure," she said.
"Employment's usually the lag indicator, it is the last thing that gets into positive territory."