BNZ – BusinessNZ
Performance of
Manufacturing
Index

Easing back – PMI

12 Mar, 2021
53.4
February
-4.6

Monthly Change

expanding
slower rate

New Zealand’s manufacturing sector saw a slower rate of expansion during February, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for February was 53.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was down 4.6 points from January.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the February result was more in line with the long term average of the PMI (53.0).

“The major sub-index values were all down from January, with Production (57.3) leading the way, followed by New Orders (56.2).  Both Employment (49.8) and Deliveries (47.6) remained in contraction, with the former reverting back to levels seen in December.”

“Despite the PMI remaining in expansion, the proportion of those outlining negative comments stood at 54%, compared with 46% in January.  Given the second recent partial lockdown, it remains to be seen what impact this will have on the sector over the next few months.”

BNZ Senior Economist, Craig Ebert said that “supply issues were to the fore from respondents’ comments to February’s PMI survey.  Of those citing negative factors, supply rather than demand problems dominated, with frequent references to supply chains, shipping, freight, costs, and difficulties in finding suitable staff.”

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

PMI

With its 53.4 for February, the Performance of Manufacturing Index (PMI) slipped back to about average. This was after a strong January (58.0) and an unusually weak December (48.3).  Average was also the motto of the PMI’s 3-month running mean, with its 53.3 being very close to the long-term average of 53.0.
Read more

Supply issues

This left the deliveries of raw materials index as the laggard in the PMI.  At 47.6 in February this was the sixth month of the last seven in being below the 50 breakeven mark (versus a long term norm of 52.9).
Read more

Manufacturing sales

Nonetheless, as mentioned earlier, the production signals from the PMI remained upbeat through February.  Granted, this did not appear consistent with Tuesday’s December quarter manufacturing data.
Read more

Forestry

New Zealand’s forestry sector has recovered strongly, post the lockdowns of autumn 2020. To be sure, wood and paper products comprise only 9% of total NZ manufacturing output (as per the GDP accounts), versus 31% for food, beverage and tobacco products.
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
2020
Oct
2020
Nov
2020
Dec
2020
Jan
2021
Feb
2021
BNZ – BusinessNZ PMI 54.1 52.2 54.9 48.3 58.0 53.4
Production 54.9 51.9 55.4 52.4 59.3 57.3
Employment 51.5 52.3 51.3 49.8 56.1 49.8
New Orders 56.2 53.2 56.7 50.5 62.8 56.2
Finished Stocks 53.5 49.3 59.5 45.3 52.9 51.2
Deliveries 53.6 49.1 51.6 45.0 48.8 47.6

BNZ – BusinessNZ PMI Time Series

February 2017 – February 2021

International Results

J.P. Morgan Global Manufacturing PMITM

01 Mar 2021
53.9

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.

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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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Our Contributors

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