BNZ – BusinessNZ
Performance of
Manufacturing
Index

February pause – PMI

11 Mar, 2016
56.0
February
-2.0

Monthly Change

expanding
slower rate

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

The seasonally adjusted PMI for February was 56.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2 points down from January, although still the third highest level of activity over the last 12 months.  The sector has now been in continued expansion since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that while January’s sizzling result could not be built on, the level of expansion was still healthy in the sector for February.  This was also supported by the fact that over two-thirds of comments remain positive.
 
“The other area of interest in the February result was the slight contraction in employment, which last occurred in December 2014.  Given the other sub-indexes of new orders and production remain very healthy, it will be interesting to see how employment growth plays out in the months to come .”    

BNZ Senior Economist Doug Steel said ‘We would be more concerned by the dip in the employment indicator this month if it were not for very strong new orders and ongoing underlying strength in broader spending indicators. Overall, the PMI remains robust.’

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 Robust

New Zealand’s Performance of Manufacturing Index (PMI) was firm in February. Sure, it slowed a couple of points to 56.0, from January’s 58.0, but it remains firmly in the mid-50s zone implying a solid rate of expansion.

Read more  

Detail: Disaster or Delight?

While the overall PMI looks as solid as it has for many months now, it is not without some interesting detail. Take the significant drop in the employment index for instance. While it might just be monthly noise we should not dismiss it out of hand.

Read more  

Dairy Drag

Extreme weakness in the dairy industry continues to influence parts of manufacturing. This looks set to continue with a further reduction in the current season’s payout forecast.

Read more  

Spending Strong

Spending indicators remain buoyant. The value of total electronic transactions in February was a whopping 9.5% higher than a year earlier.

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 Feb
2015
Oct
2015
Nov
2015
Dec
2015
Jan
2016
Feb
2016
BNZ – BusinessNZ PMI 56.6 53.5 55.1 57.0 58.0 56.0
Production 53.8 53.6 54.2 57.0 60.3 56.6
Employment 52.7 52.3 53.8 53.1 54.7 48.5
New Orders 62.7 56.0 58.2 60.0 60.0 61.0
Finished Stocks 53.2 49.7 50.7 55.1 54.5 57.1
Deliveries 58.1 52.9 55.0 57.6 58.1 56.8

BNZ – BusinessNZ PMI Time Series

February 2018 – February 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Mar 2016
50.0

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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Our Contributors

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