BNZ – BusinessNZ
Performance of
Manufacturing
Index

Little Christmas cheer

15 Dec, 2023
46.7
November
+3.8

Monthly Change

Contracting
Slower Rate

Activity in New Zealand’s manufacturing sector improved during November, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for November was 46.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up from 42.9 in October, and the highest level of activity since June. However, the November result still showed the sector to be contraction, and represented the ninth consecutive monthly result below the 50.0 mark.

BusinessNZ’s Director, Advocacy Catherine Beard said that while the November result halted a five month run of worsening levels of decline, there is still work to be done to get the sector back into expansion.

“The key sub index measure of Production (43.6) remains stubbornly low, while New Orders (47.7) showed some improvement compared to previous months. Employment (47.9) also showed a relative improvement, while Finished Stocks (50.7) managed to revert back to expansion after a dip in October”.

The proportion of negative comments stood at 58.7%, which was down from 65.1% in October and 68.8% in September. A general lack of demand and sales was the overriding theme mentioned by many manufacturers.

BNZ Senior Economist, Craig Ebert stated that “at the heart of the recent poor run in the PMI has been its production index. While this improved a bit in November, it was, at 43.6, almost 10 index points south of its long-term average. That’s a big undershoot, in historical context”.

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

The Performance of Manufacturing Index (PMI) improved quite a bit in November, jumping 3.8 index points. Even so, it remained very weak as a level, at 47.6.

Read more

Seasonal considerations

With all of this, how was it that only one of the industry groups registered a sub-50 result for November? Namely, Wood and Paper products, with 39.2.

Read more

Production pull-back (dampens inventory)

At the heart of the recent poor run in the PMI has been its production index. While this improved a bit in November, it was, at 43.6, almost 10 index points south of its long-term average.

Read more

Reflections on GDP

The Q3 GDP report also affirmed a big pull-back in manufacturing production, with a quarterly drop of 3.4%.

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 2022 Jul 2023 Aug 2023 Sep 2023 Oct 2023 Nov 2023
BNZ – BusinessNZ PMI 47.3 46.5 46.0 45.2 42.9 46.7
Production 49.3 43.1 43.6 44.3 41.6 43.6
Employment 46.4 44.7 47.7 45.4 43.8 47.9
New Orders 43.2 45.1 46.4 44.9 44.5 47.7
Finished Stocks 54.9 52.5 51.7 51.3 45.8 50.7
Deliveries 50.2 42.6 47.6 44.4 43.3 48.0

BNZ – BusinessNZ PMI Time Series

January 2019 – November 2023

International Results

J.P. Morgan Global Manufacturing PMITM

01 Dec 2023
49.3

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

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Our Contributors

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