According to the Business NZ Survey published on late Wednesday evening, the Business NZ performance of manufacturing index (PMI) for New Zealand rose to 57.9 in January from 57.0 in December. It was the highest level since October 2014.

December's figure was revised up from 56.7.

A reading above 50 indicates expansion in the manufacturing sector.

The rise was mainly driven by a faster expansion in new orders and production.

"Over two-thirds of manufacturers provided positive comments regarding their main influence on business activity, with increased sales both on a domestic and international basis. Other comments outlined the general positive sentiment occurring in the New Zealand economy," Business NZ's executive director for manufacturing, Catherine Beard, said.