New Zealand’s manufacturing sector showed a consistent level of expansion during February, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for February was 55.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was almost identical to the January result of 55.1, and above the average of 52.5 since the survey began.
BusinessNZ’s Director of Advocacy, Catherine Beard, said the February result marked the first time since mid-2021 that activity had recorded three consecutive months at 55.0 or higher.
“All five sub-index values were again in expansion during February. This was led by the two key indices of New Orders (57.6) and Production (56.7), followed by Deliveries (51.0). Employment (50.4) dipped from January, but still remained in slight expansion.
The proportion of positive comments from respondents stood at 55.5% in February, up from 47.7% in January but down from 57.1% in December. Manufacturers reported more orders, enquiries, and sales, supported by stronger export demand and improving conditions in certain sectors. Some also noted a growing pipeline of work and a gradual improvement in business confidence.
BNZ’s Senior Economist Doug Steel said that “recent economic data have taken a backseat relative to the conflict in Middle East. While it is too early for the PMI to capture any of these impacts, the February outturn well above the breakeven 50 mark is a useful starting point”.
