New Zealand manufacturing expanded at the 5-year high in June, a clear sign that the economy is pulling out of a slump.

Central bank Governor Anna Breman linked the surge to a burgeoning recovery and reinforced the bank’s recent interest rate hike. The decision signals confidence that inflation pressures are easing while growth remains solid.

For investors, the data suggests that industrial output will continue to lift corporate earnings, especially in sectors tied to export demand. Businesses may see higher input costs offset by stronger sales, while the higher‑rate environment could temper speculative borrowing. Market participants will watch the next policy meeting closely to gauge whether the central bank will pause or resume tightening as the expansionary trend unfolds.