BNZ – BusinessNZ
Performance of
Manufacturing
Index

Consistent expansion – PMI

19 Jan, 2017
54.5
December
0.0

Monthly Change

expanding
same rate

Activity in New Zealand’s manufacturing sector saw December expansion at the same level as November, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for December was 54.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was the same as November, and the joint lowest expansion level since October 2015. Overall, the sector remains solidly in expansion in almost all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that although December’s result did not show improvement from November, the overall result for 2016 was encouraging.

“Activity in the manufacturing sector over 2016 averaged out at 56.0. This was up from 54.2 in 2015, but interestingly the same result as both 2014 and 2013. Overall, this shows how consistent and positive activity has been for the sector over the last few years”.

“In addition, the proportion of positive comments stood at 70% for December, with seasonal factors (particularly Xmas) having a strong influence”.

BNZ Senior Economist, Craig Ebert, said “the December result caps off a positive year for the manufacturing sector.  Indeed, since the survey started in 2002, last year’s average has only been surpassed by 2004’s 57.5”.

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

Happy Last Year

New Zealand’s Performance of Manufacturing Index (PMI) finished 2016 at 54.5, so no change between November and December. The final two months weren’t quite as strong as the rest of the year (not due to earthquakes, it would seem, as, regionally, Central NZ has shown the largest annual increase).
Read more  

Some Warnings

The PMI and QSBO both suggest manufacturers enjoyed reasonable growth, particular in production, in the final quarter of 2016. But some details raise a warning.
Read more  

Happy New Year

A reason not to be too alarmed by softer new order indicators is manufacturers’ overall upbeat outlook. Manufacturers in the QSBO are more confident.
Read more  

Supply and Demand

Also above norms are indicators of manufacturers’ resource tightness. For example, manufacturers’ difficulty in finding appropriate staff has become even more acute while capacity utilisation, at 92.3%, is above its long term average, of 90.4%.
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 Dec
2015
Aug
2016
Sep
2016
Oct
2016
Nov
2016
Dec
2016
BNZ – BusinessNZ PMI 56.9 55.1 57.5 55.1 54.5 54.5
Production 56.5 55.9 61.2 58.0 58.0 57.6
Employment 51.5 47.2 50.2 53.2 49.1 51.6
New Orders 59.8 59.0 60.4 54.8 57.8 52.6
Finished Stocks 54.8 51.4 54.4 52.5 50.0 51.8
Deliveries 57.0 56.1 57.4 55.4 53.1 54.6

BNZ – BusinessNZ PMI Time Series

December 2018 – December 2022

International Results

J.P. Morgan Global Manufacturing PMITM

03 Jan 2017
52.7

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

Building blocks – PMI

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...

Mid year blues – PMI

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).

Soldering on – PMI

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