BNZ – BusinessNZ
Performance of
Manufacturing
Index

Ebbs and flows – PMI

13 Dec, 2019
51.4
November
-1.2

Monthly Change

expanding
slower rate

New Zealand’s manufacturing sector experienced slower expansion levels in November, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for November was 51.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was the second consecutive month in expansion, it was 1.2 points lower than October’s value.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the November result was somewhat of a mixed bag. 

“The sub-index of new orders (54.5) continued to lead the charge in terms of displaying the highest level of expansion.  However, production (49.6) fell back into slight contraction, as did employment (49.2).  Finished stocks (48.6) remained in a fairly tight band of contraction, while deliveries of raw materials (52.8) continued to improve from the previous month.

“The fact that new orders remains relatively healthy should provide further impetus for the sector in the coming months.  However, a sustained level of activity above the long term average for new orders would help get the sector as a whole back on track.  

Despite the dip in expansion, the proportion of positive comments for November (65.3%) was higher than October (57.6%) and September (48.8%).  Seasonal factors such as Xmas was a common theme in comments, as well as more offshore demand.

BNZ Senior Economist, Doug Steel said that “If October’s big lift in the PMI suggested the worst of NZ’s economic slowdown was behind us, November’s consolidation suggests any acceleration is not going to be in a straight line”.

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

Glass Half Empty?

The focus ahead of the November issue of the Performance of Manufacturing Index (PMI) was to see how it fared after its big jump in October. Did it hold the gains or push even higher? Or did it unwind the previous move and fall back into contractionary territory?
Read more

Glass Half Full?

But November’s PMI had some features to like as well, at least relative to recent history. The glass-half-full perspective sees the manufacturing sector posting its second consecutive month of expansion (index above 50).
Read more

Relatively Good

Another positive perspective is that NZ’s PMI is clearly above equivalents in other countries. Overall global manufacturing indicators have just crept back into positive territory but are still struggling well below trend as trade and economic uncertainty hinders investment.
Read more

Production OK in Q3?

Official manufacturing sales and inventory data for Q3 was released on Monday and inferred a surprisingly solid output gain.  While sales volumes fell 0.3%, there was a build-up in inventory indicating production was actually pretty good.
Read more

Doug Steel

Doug Steel

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 Nov
2018
Jul
2019
Aug
2019
Sep
2019
Oct
2019
Nov
2019
BNZ – BusinessNZ PMI 53.2 48.3 48.6 48.8 52.6 51.4
Production 51.1 51.2 49.6 46.5 52.4 49.6
Employment 51.4 42.2 50.1 50.0 50.0 49.2
New Orders 55.8 49.2 45.1 51.3 55.6 54.5
Finished Stocks 54.5 52.6 52.3 48.9 48.4 48.6
Deliveries 52.7 49.1 48.5 47.5 51.3 52.8

BNZ – BusinessNZ PMI Time Series

November 2018 – November 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 Dec 2019
50.3

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 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).

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