BNZ – BusinessNZ
Performance of
Manufacturing
Index

Stocked up – PMI

18 Jan, 2019
55.1
December
+1.4

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector experienced a positive end to 2018, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for December was 55.1 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.4 points up from November, and the highest level of overall activity since April.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the December result ensured activity over 2018 kept ahead of the long-term results for the sector.

“2018 averaged 53.8 in activity, slightly ahead of the overall average of 53.4 since the survey began.  However, it was still a noticeable dip in expansion compared with 56.2 over 2017 and 56.0 over 2016.     

Looking at the main sub-index values, new orders (56.1) still remains in healthy territory, although it was interesting to note that finished stocks (58.6) was at its highest level since the survey began.

In addition, the proportion of positive comments for December (60.6%) was slightly up from November (60.1%).  Seasonal factors were again a major discussion point, with the Christmas period dominating comments”. 

BNZ Senior Economist, Craig Ebert said that “the latest NZ PMI result is all the more encouraging in the context of slowing growth in global manufacturing. The latter is part of what’s casting clouds around international GDP growth expectations, going into 2019”.

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 (PMI) ended 2018 on a robust note. Its seasonally adjusted reading, of 55.1, was confidently back above its long-term norm (53.4).
Read more

Global

The latest NZ PMI result is all the more encouraging in the context of slowing growth in global manufacturing. The latter is part of what’s casting clouds around international GDP growth expectations, going into 2019.
Read more

QSBO

Even now, not everything about New Zealand’s manufacturing industry is as encouraging as December’s PMI indicated. Tuesday’s NZIER Quarterly Survey of Business Opinion (QSBO), for example, registered a tone of struggle regarding manufacturing output over the prior 3 months.
Read more

Capacity/Pricing

Encouragingly, the latest QSBO registered a much-recovered view on investment spending amongst manufacturers.
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 Dec
2017
Aug
2018
Sep
2018
Oct
2018
Nov
2018
Dec
2018
BNZ – BusinessNZ PMI 50.8 52.3 52.1 53.8 53.7 55.1
Production 52.4 52.6 50.1 53.2 51.9 55.7
Employment 51.6 49.3 50.8 52.3 51.2 52.2
New Orders 51.0 53.3 53.0 57.0 56.3 56.1
Finished Stocks 50.7 52.0 52.8 53.5 55.3 58.6
Deliveries 49.5 54.0 52.5 50.9 53.0 58.5

BNZ – BusinessNZ PMI Time Series

December 2014 – December 2018

International Results

J.P. Morgan Global Manufacturing PMITM

02 Jan 2019
51.5

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.

PMI Releases

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New Zealand's manufacturing sector saw another lift in expansion for August, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for August was 54.9 (a PMI reading above 50.0 indicates that manufacturing is...

On the margins – PMI

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...

Mid year blues – PMI

New Zealand’s manufacturing sector fell back into contraction for the first time since the most recent national lock-down in August 2021, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Soldering on – PMI

New Zealand’s manufacturing sector remained under its long-term average level of activity for May, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Slow grind – PMI

New Zealand’s manufacturing sector experienced a lower level of expansion during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Our Contributors

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