BNZ – BusinessNZ
Performance of
Manufacturing
Index

Stuck in low gear

16 Feb, 2024
47.3
January
+3.9

Monthly Change

Contracting
Slower Rate

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 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up from 43.4 in December and the highest level of activity since June 2023. However, the sector has now been in contraction for eleven consecutive months.

BusinessNZ’s Director, Advocacy Catherine Beard said that the January result was a step in the right direction to get the sector out of a prolonged period of contraction, but further work remains.

“On the positive side, Employment (51.3) was in slight expansion for the first time since February 2023, while New Orders (47.7) improved to its highest level since May 2023. However, New Orders has now remained in contraction for eight consecutive months, which combined with Production (42.1) has meant a sector that is still someway off returning to expansion”.

The proportion of negative comments in January stood at 63.2%, which was up from 61% in December and 58.7% in November. Seasonal factors such as holidays was noted by many, as well as a lack of demand/orders.

BNZ Senior Economist Doug Steel, stated that “across components, employment stood out like the proverbial with a poke back above 50. This is at odds with deeply negative production and demand indicators like new orders. The whiff of more employment in the PMI might reflect better access to staff, with manufacturers reporting in the latest QSBO that labour is easier to find”.

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

Less weak

The Performance of Manufacturing Index (PMI) sort of looked a bit better in January as it lifted to 47.3 from December’s 43.4. But it is better described as less weak.

Read more

Not all bad

Today’s release did have a couple of positives. Food processing remains expansionary, with signs primary production has so far largely skirted the potential ills of El Nino.

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 Jan 2023 Sep 2023 Oct 2023 Nov 2023 Dec 2023 Jan 2024
BNZ – BusinessNZ PMI 50.6 45.2 42.8 46.6 43.4 47.3
Production 51.4 44.3 41.6 43.5 40.5 42.1
Employment 50.2 45.4 43.9 48.6 47.0 51.3
New Orders 48.6 44.9 44.3 47.4 44.0 47.7
Finished Stocks 52.5 51.2 45.6 50.4 45.9 47.3
Deliveries 50.7 44.5 43.3 47.9 43.7 49.3

BNZ – BusinessNZ PMI Time Series

January 2019 – January 2024

International Results

J.P. Morgan Global Manufacturing PMITM

01 Feb 2024
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

Freefall

Activity in New Zealand’s manufacturing sector dropped to its third lowest value for a non-COVID lockdown month, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for June was 41.1 (a PMI reading above 50.0...

Lack of orders

Activity in New Zealand’s manufacturing sector experienced a drop in May and ongoing contraction of the sector, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for May was 47.2 (a PMI reading above 50.0...

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...

Our Contributors

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