The country's manufacturing sector saw a lift in the level of expansion for February, but worries remain over the months ahead as Omicron spreads.
BNZ senior economist Craig Ebert Photo: RNZ /Dom Thomas
The latest BNZ - Business NZ Performance of Manufacturing Index (PMI) for February is up 1.3 points on the previous month to 53.6 - above the long-term average of 53.1.
A reading above 50 indicated the sector is expanding and below 50 meant contraction.
The new orders sub-index increased to its highest level since last July, while production saw a slight improvement.
Employment rose back into expansion, but finished stocks dropped to its lowest result since November.
BNZ senior economist Craig Ebert said the positive headline index did not tell the full picture.
"In unadjusted terms, four out of the nine industries were in contraction mode, including 44.7 for wood and paper manufacturing.
"There also remained the theme - something we've also seen in the PSI [Performance of Services Index] - of the smaller firms struggling relative to larger ones. In February, micro-sized firms logged a contractionary 39.3 while large firms registered an expansive 58.1," he said.
Business NZ's director for advocacy Catherine Beard said despite some positivity in February, it needed to be balanced with the wider spread of Omicron potentially affecting business plans in the months ahead.