BNZ – BusinessNZ
Performance of
Manufacturing
Index

Easing off – PMI

13 Apr, 2018
52.2
March
-1.1

Monthly Change

expanding
slower rate

New Zealand’s level of manufacturing expansion decreased further in March, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for March was 52.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.1 points lower than February, and the second consecutive decrease in overall expansion levels for 2018.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the manufacturing story of 2018 continues, whereby it is still showing expansion, but at a different level to 2017.

“On a positive note, the proportion of positive comments in March (55.1%) picked up from both February (51.4%) and January (50.7%).  Those who provided negative comments typically noted a lack of finding the right staff, reduced orders (both domestically and offshore) and general uncertainty in the market.

BNZ Senior Economist, Craig Ebert said that “the weak spot in March’s PMI was its production index.  With a seasonally adjusted outcome of 50.8 this was close to stalling. Compare this to February’s 53.7 and the exceptionally high reading of 61.0 back in November and a sense of sharp deceleration arises”.

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

New Zealand’s Performance of Manufacturing Index (PMI) has only looked weak this year in comparison to its racy performance across 2017. In March it slowed to a seasonally adjusted 52.2, compared to February’s average-like 53.3.
Read more

QSBO Manufacturing

The weak spot in March’s PMI was its production index. With a seasonally adjusted outcome of 50.8 this was close to stalling. Compare this to February’s 53.7 and the exceptionally high reading of 61.0 back in November and a sense of sharp deceleration arises.
Read more

Capacity Constraint

Even if manufacturing production does struggle for the meantime, it could well reflect a lack of capacity rather than any poverty of demand. The difference carries diametrically opposed conclusions for inflation.
Read more

Investment

The NZIER’s QSBO also added to the context of manufacturers by showing that the sector’s investment intentions were generally robust. This was certainly the case with respect to plant and machinery, where a net balance of 23% intended expansion.
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 Mar
2017
Nov
2017
Dec
2017
Jan
2018
Feb
2018
Mar
2018
BNZ – BusinessNZ PMI 57.9 57.6 51.2 54.2 53.3 52.2
Production 59.7 61.0 53.6 53.9 53.7 50.8
Employment 53.5 54.3 51.5 52.7 54.7 53.5
New Orders 64.4 57.0 49.7 55.4 54.2 53.8
Finished Stocks 52.3 57.3 51.8 52.7 50.5 53.8
Deliveries 54.5 58.4 49.7 54.9 52.7 53.2

BNZ – BusinessNZ PMI Time Series

March 2018 – March 2022

International Results

J.P. Morgan Global Manufacturing PMITM

03 Apr 2018
53.4

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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Soldering on – PMI

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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