BNZ – BusinessNZ
Performance of
Manufacturing
Index

Pros and cons – PMI

11 Mar, 2022
53.6
February
+1.3

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector saw a lift in the level of expansion for February, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for February was 53.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.3 points higher than January, and above the long-term average of 53.1 for the survey.

BusinessNZ’s Director, Advocacy Catherine Beard said that there were certainly some positive signs with the February result.  However, this needed to be balanced with the wider spread of Omicron potentially affecting business plans in the months ahead, as well as comments from manufacturers still firmly in negative territory (69.9%).        

“In terms of the main sub-indices, New Orders (58.2) increased to its highest level since July 2021, while Production (52.1) did experience a slight improvement, although still at its second lowest value since September 2021. Employment (51.7) rose back into expansion, while Finished Stocks (50.0) dropped to its lowest result since November 2021.”

BNZ Senior Economist, Craig Ebert stated that “underlying unease will certainly be piqued by the sustained high COVID case numbers as we go into March.  The next PMI result may also see fallout from the Russia/Ukraine conflict, whose global impacts will be felt far and wide.”

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

PMI

February’s Performance of Manufacturing Index (PMI) proved resilient to Omicron’s onset. Its seasonally adjusted outcome of 53.6 was not only better than January’s 52.3, but was a nudge above its long-term norm, of 53.1.
Read more

Ordering up more production

The good news extended to the fact the PMI new orders index jumped to a 58.2, from 53.6 in January. While this sub-index does tend to average higher than the other sub-indices, its outcome for February was comfortable above that mark.
Read more

Mixed undercurrents

Having said all of this, not everything about this latest PMI was positive. In unadjusted terms, 4 out of the 9 industries were in contraction mode, including 44.7 for Wood & Paper Manufacturing.
Read more

Global watch

Underlying unease will certainly be piqued by the sustained high COVID case numbers as we go into March. We will watch the next PMI result also wary of fallout from the Russia/Ukraine conflict, whose global impacts will be felt far and wide.
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 Feb
2021
Oct
2021
Nov
2021
Dec
2021
Jan
2022
Feb
2022
BNZ – BusinessNZ PMI 54.8 54.7 51.4 53.9 52.3 53.6
Production 59.6 53.6 53.0 56.2 51.1 52.1
Employment 50.0 51.9 48.6 52.2 49.5 51.7
New Orders 58.4 54.6 55.6 57.4 53.6 58.2
Finished Stocks 52.8 54.7 48.7 53.1 52.5 50.0
Deliveries 49.7 60.1 44.4 51.5 54.0 53.5

BNZ – BusinessNZ PMI Time Series

February 2018 – February 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Mar 2022
53.6

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PMI Releases

Stuck in low gear

Activity in New Zealand’s manufacturing sector improved in January, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for January was 47.3 (a PMI reading above 50.0...

Tough year

Activity in New Zealand’s manufacturing sector ended in further contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for December was 43.1 (a PMI reading above 50.0 indicates that manufacturing is...

Little Christmas cheer

Activity in New Zealand’s manufacturing sector improved during November, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for November was 46.7 (a PMI reading above 50.0...

Downward spiral

Activity in New Zealand’s manufacturing sector dropped further during October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for October was 42.5 (a PMI reading above 50.0 indicates that manufacturing is...

Entrenched contraction

New Zealand’s manufacturing sector slipped further into contraction during September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for September was 45.3 (a PMI reading above 50.0 indicates that...

Our Contributors

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