BNZ – BusinessNZ
Performance of
Manufacturing
Index

Producing the goods – PMI

15 Dec, 2017
57.7
November
+0.4

Monthly Change

expanding
faster rate

New Zealand’s level of manufacturing activity during November returned to September’s expansion result, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for November was 57.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.4 points up from the previous month, and returned the sector back to September’s result.  It also continues the relatively tight band of expansion seen over the last four months.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the sector is heading towards a stronger second half of the year.

“The sub index value for production (62.1) was at its highest level of expansion since July 2013, while finished stocks (57.5) was the highest recorded since the survey began, just pipping the 57.4 recorded in September 2014.  Also, the proportion of positive comments in November (65.1%) increased slightly from October (64.2%).

BNZ Senior Economist, Doug Steel, said that “recent surveys have seen business confidence falter during and after the government formation process.  In contrast, the PMI, which is a survey of business outcomes rather than sentiment has remained rock solid over recent months”.

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

Rock Solid

Various recent surveys have seen business confidence falter during and after the government formation process. In contrast, the Performance of Manufacturing Index (PMI), notably a survey of business outcomes rather than sentiment, has remained rock solid over recent months.
Read more

GDP Supportive

In the November PMI details, production led the charge with the index punching up to a very strong 62.1 – its highest level since mid-2013. This follows an already firm 60.9 reading in October and an average of 59.0 in the three months to September.
Read more

Things To Watch

For all the strength within the PMI, there are some details worth monitoring as possible vulnerabilities. One is a further lift in the PMI inventories index in November to its highest level since the survey started back in 2002.
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 Nov
2016
Jul
2017
Aug
2017
Sep
2017
Oct
2017
Nov
2017
BNZ – BusinessNZ PMI 54.6 55.5 58.0 57.7 57.3 57.7
Production 58.4 56.6 60.5 59.9 60.9 62.1
Employment 48.7 55.9 56.6 51.1 51.6 54.2
New Orders 58.9 55.7 59.1 60.7 59.9 57.6
Finished Stocks 50.3 56.2 53.1 55.1 55.6 57.5
Deliveries 53.2 56.4 56.1 58.4 58.1 58.9

BNZ – BusinessNZ PMI Time Series

November 2018 – November 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Dec 2017
54.0

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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Our Contributors

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