BNZ – BusinessNZ
Performance of
Manufacturing
Index

Marching orders – PMI

13 Apr, 2017
57.8
March
+2.1

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector saw activity increase further in March, with new orders leading the way, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
 
The seasonally adjusted PMI for March was 57.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.1 points higher than February, and the highest level of expansion since January 2016.  Overall, the sector has remained in expansion in almost all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that it was pleasing to see the sector pick up across all sub-indices.
 
“The key sub-indices of production (60.4) and new orders (64.3) were both above the 60 point mark for the first time since September 2016, with the latter at its highest level of expansion since June 2004”.
 
“In addition, the pick-up in overall activity was mirrored by a corresponding lift in the proportion of positive comments, rising from 61.7% in February to 67.2% in March”.  

BNZ Senior Economist, Craig Ebert, said that “while the recent rebound has been in all the right places, it’s new orders that have stood out head and shoulders.  This is a good sign that production will sustain its strong momentum”.

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

What a difference a couple of months make. Having slowed right down to 53.2 in January, New Zealand’s Performance of Manufacturing Index (PMI) surged to a very strong 57.8 in March.
Read more  

QSBO and Capacity Constraint

The narrative of rebound from the March PMI tallied with what we saw in the manufacturing component of last week’s NZIER Quarterly Survey of Business Opinion (QSBO).
Read more  

Industry

The rebound in the PMI has reflected substantive gains in the very industries that lagged so much back in January.
Read more  

Inventory

The latest QSBO also gives us an opportunity to look into the inventory cycle. We mention this, with the manufacturing industry’s stocks having built up quite a bit in the Q4 GDP accounts.
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 Mar
2016
Nov
2016
Dec
2016
Jan
2017
Feb
2017
Mar
2017
BNZ – BusinessNZ PMI 53.4 54.4 54.5 53.2 55.7 57.8
Production 53.7 57.6 57.6 49.2 57.8 60.4
Employment 49.3 49.2 51.8 52.1 51.4 53.4
New Orders 57.8 57.8 52.8 53.5 58.2 64.3
Finished Stocks 54.5 50.2 52.0 50.9 55.6 52.6
Deliveries 51.5 53.1 54.6 53.4 54.3 53.9

BNZ – BusinessNZ PMI Time Series

March 2018 – March 2022

International Results

J.P. Morgan Global Manufacturing PMITM

03 Apr 2017
53.0

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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Slow grind – PMI

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Our Contributors

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