BNZ – BusinessNZ
Performance of
Manufacturing
Index

Small steps

10 Mar, 2023
52.0
February
+0.8

Monthly Change

Expanding
Faster Rate

New Zealand’s manufacturing sector experienced a further increase in expansion, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for February was 52.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.8 points up from January, although still below the long-term average activity rate of 53.0.

BusinessNZ’s Director, Advocacy Catherine Beard said that the February result managed to show an incremental step towards higher levels of activity, which at the very least starts the year off with two months of consecutive expansion.

“The key sub-index of New Orders (52.0) returned to expansion after five consecutive months of contraction, while Finished Stocks (55.8) and Employment (54.0) both experienced ongoing growth. However, Production (49.4) did fall back into contraction to its lowest level since June 2022, while Deliveries (51.8) showed the same level of expansion as the previous month.

With a further lift in activity for February, the proportion of negative comments from manufacturers dipped to 60.2%, compared with 69.9% for January, 63.5% for December and 58.4% for November. Manufacturers were somewhat split with some noticing a slowdown in sales and enquiries, while others noted a bump in activity, including new customers both domestically and offshore.

BNZ Senior Economist, Craig Ebert stated that “it’s been a New Year gearshift, out of reverse. However, these are not what you’d call strong results – in total, and especially when delving into the details. That said, February’s PMI, like January’s, did denote expansion, overall, and is not all that far shy of its long-term average of 53.0″.

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

New Zealand’s Performance of Manufacturing Index (PMI) continues to dust off the negativity it displayed over the closing months of 2022.

Read more

Principal detail

As mentioned, however, the composition of the latest PMI continued to temper the positive headline result. For example, across the principal components, production, at 49.4, stumbled back into contraction territory, after a decent 52.0 for January.

Read more

Mixed from other angles too

There were also mixed messages in the industry detail of the latest PMI. Four of the nine sub-groups were running below the 50-breakeven mark in February.

Read more

Regionally important reports

Of course, we need to be particularly mindful of the regional breakdown of the PMI now, given the disastrous weather that hit the upper and eastern parts of the North Island over the last couple of months.

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 2022 Oct 2022 Nov 2022 Dec 2022 Jan 2023 Feb 2023
BNZ – BusinessNZ PMI 53.1 48.9 47.4 48.1 51.2 52.0
Production 52.2 49.8 49.5 49.8 52.0 49.4
Employment 50.6 48.9 47.2 49.9 51.6 54.0
New Orders 57.3 44.7 42.5 48.6 49.2 52.0
Finished Stocks 49.4 54.6 55.6 50.0 52.7 55.8
Deliveries 52.6 55.1 49.7 48.5 51.8 51.8

BNZ – BusinessNZ PMI Time Series

January 2018 – February 2023

International Results

J.P. Morgan Global Manufacturing PMITM

01 Feb 2023
50.0

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.

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...

Our Contributors

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