BNZ – BusinessNZ
Performance of
Manufacturing
Index

No Xmas cheer – PMI

17 Jan, 2019
49.3
December
-1.9

Monthly Change

contracting
slower rate

New Zealand’s manufacturing sector fell back into contraction for the last month of 2019, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for December was 49.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was a second consecutive decrease in activity, and the lowest result since September.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the contraction experienced in December was symptomatic of how 2019 played out for the sector.

“The manufacturing sector averaged 50.9 over 2019, compared with 53.8 for 2018 and 56.2 for 2017.  While the first half of the year managed to just keep its head above water, the second half saw four of the six months in contraction.   

“Looking at the sub-index values for 2019, the key results for production and new orders averaged 50.1 and 51.7 respectively.  Employment struggled to gain traction, averaging 49.4 over 2019.  At this stage there is not much evidence to suggest the first half of 2020 will see a noticeable improvement. 

BNZ Senior Economist, Craig Ebert said that “the December result was disappointing.  After a couple of months flirting with positivity, the PMI dipped back just below the breakeven line again”.

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

It’s disappointing. After a couple of months flirting with positivity, New Zealand’s Performance of Manufacturing Index (PMI) dipped back just below the breakeven line again in December.
Read more

QSBO reports

A sense of struggle could also be extracted from the manufacturing section of Tuesday’s NZIER Quarterly Survey of Business Opinion (QSBO).
Read more

QSBO expectations

Having said this, the QSBO also pointed to the manufacturing sector probably being through its worst now. Respondents expected output over the coming 3 months to pick up noticeably, for example.
Read more

Capacity

For the meantime, capacity utilisation in New Zealand’s manufacturing industry has come off the boil, to an extent. The QSBO variable on this – known as CUBO – eased to 91.0% in the December quarter, from 92.5% in the September quarter, and 92.7% back in June.
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 Dec
2018
Aug
2019
Sep
2019
Oct
2019
Nov
2019
Dec
2019
BNZ – BusinessNZ PMI 55.0 48.6 48.8 52.6 51.2 49.3
Production 55.0 49.6 46.5 52.4 49.4 48.2
Employment 52.0 50.2 50.0 50.0 49.1 49.9
New Orders 56.5 44.9 51.0 56.0 54.0 51.0
Finished Stocks 57.6 52.5 49.1 48.7 49.2 52.8
Deliveries 59.6 48.5 47.4 51.3 52.6 50.7

BNZ – BusinessNZ PMI Time Series

December 2018 – December 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 Jan 2020
50.1

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

Building blocks – PMI

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