BNZ – BusinessNZ
Performance of
Manufacturing
Index

Calm before the storm? – PMI

13 Mar, 2020
53.2
February
+3.4

Monthly Change

expanding
previously contracting

New Zealand’s manufacturing sector experienced expansion for the first time in three months, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for February was 53.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was up 3.4 points from January.

BusinessNZ’s executive director for manufacturing Catherine Beard said that despite the positive February result, much focus will be on the coming months given the effect Covid-19 is having on the global economy.

“Looking at comments from respondents, there was a noticeable increase in Covid-19 being mentioned, either directly or through the impact on shipping from China.  Even those who made positive comments tempered it with concerns about the months ahead”.   

“While the sector has not been hit hard by Covid-19 as yet, offshore experiences show how rapidly the situation can change, especially for those manufacturers who source materials offshore and cater for particular markets”.  

BNZ Senior Economist, Craig Ebert said that “The most encouraging aspect of the PMI – considering the global ructions beginning to emerge in February – was arguably its new orders.  These gained to 55.3, from 50.9 in January. And with widespread reports of supply-chain disruptions around the world, it was also interesting to see the PMI’s Deliveries of Raw Materials index had picked up to 53.1, from 47.7″.

Catherine Beard

Catherine Beard

Director, Advocacy BusinessNZ

BNZ - BusinessNZ PMI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI

Manufacturing Snapshot

The PMI

Who would have guessed? New Zealand’s Performance of Manufacturing Index (PMI) rose to 53.2 in February, from 49.8 in January. This puts it essentially at its long-term average. This was broadly true of all the principal components as well.
Read more

Further Details

By industry, the only one that was below the 50-breakeven mark in February was Textiles, Clothing, Footwear and Leather (although note these indices are not seasonally adjusted). The category containing Food and Beverages had its own good news, in that it nudged up to 51.4, from 46.0 in January, even with drought making its presence felt in many parts of the country.
Read more

Global

The global malaise was clearly pinpointed in China’s PMI for February. At 35.7, from 50.0 in January, it proved far worse than the market was bracing for. While there are early signs that China’s economic activity is beginning to recover, the focus is now shifting to other parts of the world – notably Europe and the United States – where COVID-19 infections are taking hold.
Read more

Craig Ebert

Craig Ebert

Senior Economist, BNZ

Sponsor Statement

BNZ is delighted to be associated with the Performance of Manufacturing Index (PMI) and BusinessNZ.

This association brings together the significant experience of leading business advocacy body BusinessNZ, and business finance specialist BNZ.

We look forward to continuing our association with BusinessNZ and associated regional organisations, and to playing our part in the ongoing development of the New Zealand manufacturing sector.

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Feb
2019
Oct
2019
Nov
2019
Dec
2019
Jan
2020
Feb
2020
BNZ – BusinessNZ PMI 52.7 52.6 51.2 49.5 49.8 53.2
Production 52.6 52.3 49.5 49.7 50.3 53.6
Employment 50.0 49.9 49.0 49.7 47.1 50.6
New Orders 53.7 55.9 53.8 50.7 50.9 55.3
Finished Stocks 54.5 48.9 49.7 52.9 50.7 52.5
Deliveries 54.6 51.6 52.5 50.5 47.7 53.1

BNZ – BusinessNZ PMI Time Series

February 2018 – February 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 Mar 2020
47.2

About the PMI

The BNZ – BusinessNZ Performance of Manufacturing Index is a monthly survey of the manufacturing sector providing an early indicator of activity levels.

A PMI reading above 50 points indicates manufacturing activity is expanding; below 50 indicates it is contracting.

The main PMI and sub-index results are seasonally adjusted.

PMI Releases

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New Zealand's manufacturing sector saw another lift in expansion for August, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for August was 54.9 (a PMI reading above 50.0 indicates that manufacturing is...

On the margins – PMI

New Zealand's manufacturing sector rose back into expansion for July, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for July was 52.7 (a PMI reading above 50.0 indicates that manufacturing is generally...

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New Zealand’s manufacturing sector fell back into contraction for the first time since the most recent national lock-down in August 2021, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

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New Zealand’s manufacturing sector remained under its long-term average level of activity for May, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Slow grind – PMI

New Zealand’s manufacturing sector experienced a lower level of expansion during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Our Contributors

The BNZ – BusinessNZ PMI contains data obtained through BusinessNZ’s regional organisations