Activity in the manufacturing appears to be holding up, despite the high dollar and an apparent slowdown in Australia.
BNZ economist Doug Steel expects that resilience to translate into investment and job growth.
The Business New Zealand Performance of Manufacturing Index fell 0.4 points to 54.3 in June. A reading above 50 indicates the sector is expanding.
Mr Steel says the fact the index held up so well, despite the high dollar and the slowdown across the Tasman, bodes well for business investment and employment.
He says companies don't appear too worried about the slowdown in Australia.