The BNZ-Business New Zealand performance of manufacturing index shows the sector continued to expand at a record pace in July.
It rose more than 4 points to 59.5. A reading over 50 indicates expansion.
BNZ senior economist Craig Ebert says even the high Australian dollar failed to slow growth.
He says manufacturing is experiencing rapid growth and the overall outlook is positive.
However, Mr Ebert says there are some doubts the sector can keep up with the current pace of expansion.
He says some of the indicators, such as the NZIER's quarterly survey of business opinion, would suggest that if there is any spare capacity it's not all that large.
Mr Ebert says the Canterbury rebuild appears to be shielding some manufacturers from the negative impact of the high Australian dollar - at least for now.
The kiwi is currently buying around 87.90 Australian cents.
But with the Australian dollar tipped to hit 90 cents by the end of the year, Mr Ebert says the impact on manufacturers may still be felt in the coming months.
Consumer confidence rebounds
Consumer confidence rebounded in July, after slipping in June.
The latest ANZ Roy Morgan consumer confidence index rose three points to 123.
A reading above 100 indicates optimism.
Confidence has risen over the last five months, but it has largely been centred in Auckland and Christchurch.
ANZ chief economist Cameron Bagrie says confidence in those two cities dipped slightly last month, but it rose in the regions.
He says it's encouraging that economic expansion is starting to broaden across New Zealand, rather than being solely focused on Auckland and Canterbury.
By combining the business and consumer confidence indices, ANZ is forecasting the economy will grow by 4% this year.
However, Mr Bagrie admits that may be a little optimistic and 3% growth this year is more likely.
A monthly survey by ANZ Bank shows, on a seasonally adjusted basis, the number of jobs advertised online and in newspapers rose 3.5% in July, following a flat month in June.
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