Manufacturers are increasingly positive, even though the country's manufacturing sector is expanding at a slower rate.
The BNZ-Business New Zealand Performance of Manufacturing Index fell 1.6 points to 53.5 points in July, from the previous month.
A reading above 50 indicates expansion.
Business New Zealand executive director for manufacturing Catherine Beard said the proportion of positive comments from manufacturers was up on June, even though expansion slowed.
BNZ senior economist Doug Steel said the index pointed to a solid pace of manufacturing, although weakness in the dairy sector was beginning to filter through.