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”.

View the Time Series Data
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.

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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 .

View full BNZ Manufacturing Snapshot
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.

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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
View the Time Series Data

BNZ – BusinessNZ PMI Time Series

January 2020 – January 2024

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

To and Fro

Activity in New Zealand’s manufacturing sector experienced a pick up during April, although still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for April was 48.9 (a PMI reading...

One step back

Activity in New Zealand’s manufacturing sector experienced stronger contraction during March, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for March was 47.1 (a PMI reading above 50.0 indicates that...

On the improve

Activity in New Zealand’s manufacturing sector continued to show improvement in February, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for February was 49.3 (a PMI...

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...

View all PMI releases

Our Contributors

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