BNZ – BusinessNZ
Performance of
Manufacturing
Index

Slight uptick – PMI

15 Mar, 2019
53.7
February
+0.7

Monthly Change

expanding
faster rate

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

The seasonally adjusted PMI for February was 53.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.7 points up from January, and the second highest expansion level for the last nine months.

BusinessNZ’s executive director for manufacturing Catherine Beard said that overall, February was a stable month for the sector.

Looking at the main sub-index values, both production (53.9) and new orders (54.7) showed a part recovery after a noticeable drop in expansion levels during January.  However, employment (50.8) dropped a further 1.2 points to its lowest level since August 2018.

The slight improvement in February’s results also meant the proportion of positive comments for February (51.1%) was up on January (47.7%), but still down from December (60.6%) and November (60.1%).  Seasonal factors were still evident throughout the comments, although a number of respondents felt that February was business as usual.

BNZ Senior Economist, Craig Ebert said that “While the PMI remains broadly encouraging, inventory dynamics bear watching – in case they forewarn of a slower tone to manufacturing production ahead.”

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

The Performance of Manufacturing Index (PMI) maintained trend-like expansion into early 2019. Its seasonally adjusted reading of 53.7 for February was even a nudge better than January’s 53.0.
Read more

Q4

The positive messages around production in the PMI gave confidence that the industry retains impetus – even though this might not look obvious in the Q4 GDP accounts.
Read more

Inventory

Inventory dynamics will thus bear monitoring, lest they continue to warn about slower production down the track. Unfortunately, that’s exactly the message we’re getting from the PMI into the New Year.
Read more

Pricing

Production vulnerabilities noted, there is still a lot going for New Zealand’s manufacturers in terms of prices. The Q4 producer prices, for example, registered annual inflation of 2.9% in this respect.
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
2018
Oct
2018
Nov
2018
Dec
2018
Jan
2019
Feb
2019
BNZ – BusinessNZ PMI 53.5 53.6 53.5 54.8 53.0 53.7
Production 53.8 53.0 51.6 55.0 51.3 53.9
Employment 54.5 52.4 51.2 52.1 52.0 50.8
New Orders 54.3 56.9 56.0 55.2 52.2 54.7
Finished Stocks 51.3 53.4 54.7 59.3 54.7 55.4
Deliveries 53.5 50.9 53.2 58.7 54.0 55.2

BNZ – BusinessNZ PMI Time Series

February 2018 – February 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Mar 2019
50.6

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.

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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...

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Slow grind – PMI

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Our Contributors

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