BNZ – BusinessNZ
Performance of
Manufacturing
Index

Holiday mode – PMI

17 Feb, 2017
51.6
January
-2.6

Monthly Change

expanding
slower rate

Activity in New Zealand’s manufacturing sector saw January experience a dip in expansion, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January was 51.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.6 points lower than December, and the lowest level of expansion since January 2015.  However, the sector has remained in expansion in almost all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that while the decrease in expansion for the first month of 2017 was not ideal, it was clear from comments that a number of factors played a part.

“Those who outlined negative comments noted the Xmas/holiday break playing a sizeable role in reduced activity, as did weather conditions.  On the flip side, those who outlined positive comments often did not note anything specific, but more business as usual”.  

“Combined, this meant that the proportion of positive comments dropped from 70% in December to 59.5% in January”.

BNZ Senior Economist, Craig Ebert, said “the slowdown in expansion was mainly because of a marked slowdown in its production index, which dampens expectations of a big bounce in the PMI over the short 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

New Zealand’s Performance of Manufacturing Index (PMI) lost more momentum in January. It decelerated to a seasonally adjusted 51.6, from 54.2 in February.
Read more  

Industry Breakdown

One of the first things we thought, when we saw the much-slower PMI of January, was that it might reflect weakness in food processing. We certainly expect rural production to dent GDP over the early part of 2017.
Read more  

Construction

The other point of caution regarding manufacturing is its dependence on the local construction cycle. We say this with some of the building indicators having lost oomph over recent months.
Read more  

Global

And what a purple patch it has been. The NZ PMI has averaged 55.3 over the last 3 years (with not one month of outright contraction – meaning a reading of below 50.0 – throughout). Compare this to the global PMI, which has averaged 51.4 over the same period.
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 Jan
2016
Sep
2016
Oct
2016
Nov
2016
Dec
2016
Jan
2017
BNZ – BusinessNZ PMI 58.4 57.5 55.1 54.3 54.2 51.6
Production 63.0 61.3 57.8 57.2 56.9 51.1
Employment 54.3 50.3 53.2 49.3 52.0 51.5
New Orders 59.8 60.4 54.8 57.7 52.4 52.5
Finished Stocks 53.6 54.5 52.5 50.0 51.7 50.4
Deliveries 57.5 57.4 55.4 53.0 54.4 53.2

BNZ – BusinessNZ PMI Time Series

January 2018 – January 2022

International Results

J.P. Morgan Global Manufacturing PMITM

03 Feb 2017
52.7

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 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...

Mid year blues – PMI

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