BNZ – BusinessNZ
Performance of
Manufacturing
Index

On average – PMI

16 Mar, 2018
53.4
February
-1.0

Monthly Change

expanding
slower rate

New Zealand’s level of manufacturing expansion decreased slightly in February, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for February was 53.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was one point lower than January, and the second lowest expansion value in the last 13 months.  The February result was also exactly on par with the overall average PMI value since the survey began.

BusinessNZ’s executive director for manufacturing Catherine Beard said that while the PMI remained in positive territory, the last three months have shown a levelling off of expansion.

“The proportion of positive comments in February (51.4%) was very close to the result in January (50.7%).  A number of respondents have noted the sluggish start to the year, with a dip in new orders being a common message”.

BNZ Senior Economist, Doug Steel said that “there is no doubting the Performance of Manufacturing Index has slowed over recent months.  That said, February’s PMI is hardly weak in exactly matching its long term average”.

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

Average Performance

There is no doubting the Performance of Manufacturing Index has slowed over recent months. Sure, February’s 53.4 result was not too far shy of January’s 54.4 reading which, itself, was a decent recovery from December’s dip down to 51.2.
Read more

Growth Looks Slower

New orders, while still positive, have cooled, raising questions about the sustainability of demand strength seen last year. Firms don’t seem too perturbed by slower orders at this point, given their acceleration in hiring (the PMI employment index rose to its highest level in six months in February).
Read more

Demand

Demand strength appeared widespread at the end of last year. We say this judging by recent data on the likes of building activity and the distribution sectors of wholesale and retail trade.
Read more

Weather Wobbles

Early livestock culling on account of adverse weather seemed to boost Q4 manufacturing activity but will have the opposite effect through early 2018 given New Year rains.
Read more

Doug Steel

Doug Steel

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 Feb
2017
Oct
2017
Nov
2017
Dec
2017
Jan
2018
Feb
2018
BNZ – BusinessNZ PMI 56.0 57.4 57.6 51.2 54.4 53.4
Production 58.4 60.3 61.0 53.7 53.5 53.9
Employment 51.4 51.3 54.4 51.7 51.5 54.8
New Orders 58.5 59.7 57.1 49.7 49.7 54.1
Finished Stocks 56.3 54.7 56.3 51.9 52.1 51.1
Deliveries 55.0 58.0 58.5 49.7 49.8 52.7

BNZ – BusinessNZ PMI Time Series

February 2018 – February 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Mar 2018
54.2

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