BNZ – BusinessNZ
Performance of
Manufacturing
Index

Uncertain Times – PMI

16 Feb, 2018
55.6
January
+4.5

Monthly Change

expanding
faster rate

New Zealand’s level of manufacturing expansion rose in January after experiencing lower expansion for the previous month, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January was 55.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 4.5 points higher than December, although it did not see a return to levels of expansion typically seen during 2017.

BusinessNZ’s executive director for manufacturing Catherine Beard said that while it was positive to see the PMI rebound somewhat after a sizeable drop in expansion during December, comments from manufacturers provide another angle to the story.

“The proportion of positive comments in January (50.7%) was down by a fair margin compared with December (63.3%) and November (65.1%).  While seasonal factors such as Christmas and holidays are typically mentioned around this time of year, those outlining negative comments have also focussed on recent uncertainty that has led to softening activity and a slow start to the year for some”.

BNZ Senior Economist, Craig Ebert said that “while the NZ PMI has led the world for the last 5 years, the global PMI has now pretty much caught up.  This suggests the international investment cycle is clicking into place and promises to self-sustain the global economic expansion.  This should be good for manufacturing industries, New Zealand included”.

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

Like a professional footballer, New Zealand’s Performance of Manufacturing Index (PMI) has recovered remarkably well after taking a dive. The dive, of course, was to a barely-expansive level of 51.1 in December, after riding high in November, at 57.6.
Read more

Employment

Local manufacturers didn’t seem to have the luxury of deferring decisions on hiring labour, however. The employment index of the PMI pressed forth at 52.5 in January.
Read more

Agriculture

While January’s PMI outturn is obviously encouraging we remain conscious of vulnerabilities on the food processing side of things. This, in turn, relates to the weather.
Read more

Global

While the NZ PMI has led the world for the last 5 years or so, the global PMI has now pretty much caught up. The latter was a seasonally adjusted 54.4 in January – hardly different to the 54.5 result of December, which was, in fact, the swiftest since 2011.
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 Jan
2017
Sep
2017
Oct
2017
Nov
2017
Dec
2017
Jan
2018
BNZ – BusinessNZ PMI 53.4 57.7 57.3 57.6 51.1 55.6
Production 50.4 59.6 60.3 61.0 53.5 54.9
Employment 51.6 50.6 51.3 54.3 51.5 52.5
New Orders 54.4 60.6 59.7 57.1 49.7 55.6
Finished Stocks 51.6 55.2 54.7 56.5 52.1 53.1
Deliveries 53.9 58.4 58.0 58.6 49.8 55.3

BNZ – BusinessNZ PMI Time Series

January 2018 – January 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Feb 2018
54.4

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

Building blocks – PMI

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