BNZ – BusinessNZ
Performance of
Manufacturing
Index

Marching onwards – PMI

10 Apr, 2014

Activity in New Zealand’s manufacturing sector continued to march onwards, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for March was 58.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 1.9 points higher than February and the highest level of activity since July 2013. The sector has now been in expansion for 19 consecutive months, with the first quarter of 2014 averaging 57.1.

BusinessNZ’s executive director for manufacturing Catherine Beard said that there were a number of pleasing aspects to the March result.

“After five consecutive months of solid activity, it was pleasing to see activity experience a further boost. Both production and new orders remained strong, while employment also lifted to its highest level for over six years.

“The proportion of positive comments from manufacturers for March broke the 60 percent value for the first time this year, as new orders/customers and an improving economy is providing a stronger platform for business growth.”

BNZ Head of Research Stephen Toplis said, “The manufacturing sector is in a buoyant mood – and rightly so. However, the economy and financial markets are at an inflection point. At such times, the potential for significant movements in interest rates and exchange rates is heightened. Given this, businesses need to focus on risk management to ensure that the impact of such risks can be mitigated.”

For the first time since October 2013, all five seasonally adjusted main diffusion indices were in expansion for the current month. Both production and new orders (60.5) displayed the same level of expansion, while employment (56.3) rose 1.6 points to record its highest level since November 2007. Deliveries of raw materials (57.1) edged slightly downwards from February, while finished stocks (51.1) went back into expansion after four consecutive months in contraction.

All four regions were again in expansion during March, with levels very similar across the country. In the North Island, the Northern region (59.2) rose 6.3 points, while the Central region (57.6) was almost identical to February’s result. In the South Island, the Canterbury/Westland region (59.9) picked up 6.2 points from February, while the Otago-Southland region (59.8) dipped 1.9 points.

Click here to view the March PMI
Click here to view seasonally adjusted & unadjusted time series

For media comment: Catherine Beard 027 463 3212 or Stephen Toplis 04 474 6905

BNZ - BusinessNZ PMI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI

Manufacturing Snapshot

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.

BNZ – BusinessNZ PMI Time Series

January 1966 – January 1970

International Results

J.P. Morgan Global Manufacturing PMITM

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