BNZ – BusinessNZ
Performance of
Manufacturing
Index

Holding firm – PMI

14 Dec, 2018
53.5
November
-0.2

Monthly Change

expanding
slower rate

Activity in New Zealand’s manufacturing sector for November experienced a similar result to the previous month, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for November was 53.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  Although this was 0.2 points lower than October, it remained just above the long-term average of 53.4 for the survey.

BusinessNZ’s executive director for manufacturing Catherine Beard said that it was pleasing to see activity in November remain close to the October result.

“With two of the three months for the last quarter on 2018 producing results around the long-term average, this bodes well for the year to end on more of a positive note after lacklustre results during the middle of 2018.     

In addition, the proportion of positive comments for November (60.1%) improved from October (58.3%).  Seasonal factors were obviously a major discussion point, although a number pointed to increased general customer demand and sales”. 

BNZ Senior Economist, Craig Ebert said that “the improvement in the PMI since July has been underpinned by a pick-up in new orders, which achieved 56.3 in November. This level is usually a good portent that production will expand relatively well in the near term”.

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

Through November, the Performance of Manufacturing Index (PMI) consolidated its recently-improved pace.  That’s not to say it’s strong. Indeed, at a seasonally adjusted 53.5, from 53.7 in October, the PMI is simply running more surely about average. Nonetheless, it’s a little better than it was back in July, when it plumbed 51.3.
Read more

Production/Sales

For the meantime, however, the production component of the PMI has been expanding on the slow side of average.  In fact, it dipped to a seasonally adjusted 51.5 in November, from 52.9 in October.
Read more

GDP/Exports

As for what Statistics NZ comes up with, with respect to NZ manufacturing output, all will be revealed in next week’s Q3 GDP accounts. For these we are assuming a relatively flat outcome for manufacturing, but a 0.6% expansion in GDP overall.
Read more

Pricing

However, trends in manufacturing pricing were relatively strong in Q3. With respect to output (selling) prices, the latest producer price indexes registered a 2.9% quarterly increase for the industry.
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 Nov
2017
Jul
2018
Aug
2018
Sep
2018
Oct
2018
Nov
2018
BNZ – BusinessNZ PMI 57.5 51.3 52.3 52.0 53.7 53.5
Production 60.4 49.2 52.7 49.9 52.9 51.5
Employment 54.7 51.4 49.3 50.8 52.4 51.3
New Orders 56.7 52.4 53.4 53.0 57.0 56.3
Finished Stocks 56.2 53.6 51.6 52.9 53.1 54.2
Deliveries 58.1 53.9 54.0 52.5 50.8 52.5

BNZ – BusinessNZ PMI Time Series

November 2018 – November 2022

International Results

J.P. Morgan Global Manufacturing PMITM

03 Dec 2018
52.0

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.

PMI Releases

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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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Slow grind – PMI

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Our Contributors

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