BNZ – BusinessNZ
Performance of
Manufacturing
Index

Sizzling Summer – PMI

11 Feb, 2016
57.9
January
+0.9

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector started 2016 with continued strength, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January was 57.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.9 points up from December, and the highest level of expansion since October 2014. The sector has now been in continued expansion since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the January result has started the new year off to a healthy start, with the key indicators of production (60.3) and new orders(59.8) showing strong growth. “Over two-thirds of manufacturers provided positive comments regarding their main influence on business activity, with increased sales both on a domestic and international basis. Other comments outlined the general positive sentiment occurring in the New Zealand economy.”

BNZ Senior Economist Craig Ebert said “The other very agreeable feature of the latest PMI is the stoutness in its employment index. This gives us some confidence that staffing levels
in the sector will continue to expand”.

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

New Zealand’s Performance of Manufacturing Index became even faster in January. At a seasonally adjusted 57.9 it edged past December’s 14-month high of 57.0. The
strongest pulse was now coming through production, albeit with the new-orders index still very strong.

Read more  

Employment

The other agreeable feature of the latest PMI is the stoutness in its employment index. This index has averaged 50.5 since August
2002. Giving confidence that staffing levels in the sector will continue to expand.

Read more  

Housing

As the Reserve Bank stated back at its late-January OCR Review, “House price inflation in Auckland remains a financial stability risk. There are signs that the rate of increase may be moderating, but it is too early to tell.

Read more  

Exchange rate

NZD has retreated a long way from its level of around 88 US cents in mid-2014. But we believe it has further to go down this year, targeting 60 cents by mid-2016.

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 Jan
2015
Sep
2015
Oct
2015
Nov
2015
Dec
2015
Jan
2016
BNZ – BusinessNZ PMI 50.0 55.0 53.5 55.1 57.0 57.9
Production 46.8 57.1 53.6 54.2 57.1 60.3
Employment 51.1 51.1 52.6 53.8 53.5 54.9
New Orders 49.4 57.6 56.1 58.2 59.9 59.8
Finished Stocks 54.1 52.8 49.6 50.5 54.8 53.6
Deliveries 52.9 55.9 52.8 55.1 57.7 58.4

BNZ – BusinessNZ PMI Time Series

January 2021 – January 2025

International Results

J.P. Morgan Global Manufacturing PMITM

01 Feb 2016
50.9

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

Lift off

New Zealand’s manufacturing sector displayed its highest value for expansion since August 2022, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for February was 53.9 (a PMI reading above 50.0 indicates...

Expansion

New Zealand’s manufacturing sector displayed expansion for the first time in 23 months, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for January was 51.4 (a PMI reading above 50.0 indicates that...

December doldrums

New Zealand’s manufacturing sector remained in contraction for the last month of 2024, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for December was 45.9 (a PMI reading above 50.0 indicates that...

Retreat

New Zealand’s manufacturing sector continued to show contraction at a faster rate during November, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for November was 45.5 (a PMI reading above 50.0 indicates...

Lost momentum

New Zealand’s manufacturing sector showed contraction at a faster rate during October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for October was 45.8 (a PMI reading above 50.0 indicates that...

Our Contributors

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