BNZ – BusinessNZ
Performance of
Manufacturing
Index

Expansion

14 Feb, 2025
51.4
January
+5.2

Monthly Change

Expanding
Previously Contracting

New Zealand’s manufacturing sector displayed expansion for the first time in 23 months, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January was 51.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up from 46.2 in December and the highest level of expansion since September 2022. However, the January result is still below the average of 52.5 since the survey began.

BusinessNZ’s Director, Advocacy Catherine Beard said that after the longest continued period of contraction, the manufacturing sector has finally broken the trend and started 2025 on a positive note.

“All sub-index values were in expansion during January. The key sub-index results for both Production and New Orders both stood at 50.9, with the latter at its highest level of activity since August 2022. Employment (50.2) rose 2.5 points from December, while Finished Stocks (51.9) recorded its highest level of activity since May 2024.

The proportion of negative comments from respondents stood at 57.7% in January. This was down from 59% in December, but still up from 56% in November and 53.5% in October. Negative comments during January focused on the holiday break, as well as the ongoing effects of the soft economy. Positive comments displayed no strong pattern, with many focusing on specific business opportunities.

BNZ’s Senior Economist Doug Steel said that “it’s a positive start to 2025, with the manufacturing sector shifting out of reverse and into first gear. While the PMI still sits below its long-run average of 52.5, the improvement is welcome news for manufacturers after a very challenging two years”.

Production
50.9
Employment
50.2
New Orders
50.9
Finished Stocks
51.9
Deliveries
51.7
50.2
50.0
48.8
51.1
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

January jump

The Performance of Manufacturing Index (PMI) lifted sharply from 46.2 to 51.4 in January. After 22 long months in contraction, it has moved back above the breakeven 50 mark at last.

Read more

Lower interest rates supportive

In November, the Reserve Bank of New Zealand (RBNZ) noted manufacturing as one of the sectors of the economy most dampened by high interest rates.

Read more

Export intentions elevated

Around 40% of manufacturing output is exported directly, with more exported indirectly as an input into production in other sectors.

Read more

But there is heightened trade policy uncertainty

Globally, the key focus is the US, as uncertainty about the prospective Trump policy mix reigns. While the net effect of the tariffs is unclear, uncertainty breeds caution.

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 Jan 2024 Sep 2024 Oct 2024 Nov 2024 Dec 2024 Jan 2025
BNZ – BusinessNZ PMI 46.5 46.9 45.7 45.4 46.2 51.4
Production 41.1 47.7 44.1 42.7 42.7 50.9
Employment 50.2 47.0 46.0 46.9 47.7 50.2
New Orders 46.2 47.7 48.5 44.7 46.8 50.9
Finished Stocks 46.8 46.8 47.9 49.5 46.3 51.9
Deliveries 48.6 45.8 45.0 50.1 49.9 51.7

BNZ – BusinessNZ PMI Time Series

January 2020 – January 2025

International Results

J.P. Morgan Global Manufacturing PMITM

03 Feb 2025
50.1
USA
51.2
UK
48.3
Eurozone
46.6
China
50.1
Japan
48.7
Australia
50.2
NZ
51.4

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PMI Releases

December doldrums

New Zealand’s manufacturing sector remained in contraction for the last month of 2024, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for December was 45.9 (a PMI reading above 50.0 indicates that...

Retreat

New Zealand’s manufacturing sector continued to show contraction at a faster rate during November, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for November was 45.5 (a PMI reading above 50.0 indicates...

Lost momentum

New Zealand’s manufacturing sector showed contraction at a faster rate during October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for October was 45.8 (a PMI reading above 50.0 indicates that...

Long and slow road

New Zealand’s manufacturing sector continued to show higher levels of activity for September, although remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for September was 46.9 (a PMI...

Incremental improvement

New Zealand’s manufacturing sector showed further signs of improvement during August, although still in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for August was 45.8 (a PMI reading above...

Our Contributors

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