BNZ – BusinessNZ
Performance of
Manufacturing
Index

Weak production and new orders continues contraction in manufacturing activity – PMI

12 Feb, 2009

Manufacturing activity got off to a poor start in 2009 with continued contraction in the sector, according to the BNZ Capital – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January stood at 42.0. This was 0.5 points down from December, and 10.8 points lower than January 2008. The January 2009 result was the second lowest monthly result on record, as well as the ninth consecutive month in which the sector has been in decline.

A PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining. PMI values for January in the years 2003-2008 ranged from 48.3 and 56.8, with an average score for the previous December results of 54.2.

BusinessNZ chief executive Phil O’Reilly said that the poor start to 2009 for manufacturing was of little surprise given the consistency of low results during 2008, as well as other indicators highlighting the ongoing downturn.

 “The overall picture that the PMI conveys at present is one of ongoing tough times for manufacturers. While the seasonally adjusted result is the second lowest on record, the unadjusted result went below 40 for the first time since the survey began. The ongoing weakness in production and new orders also remains a primary concern for future manufacturing activity levels, and we would hope that some relief by way of the current level of the New Zealand dollar against our major trading partners will help boost new orders from offshore over the next few months.  

All five seasonally adjusted main diffusion indices were in contraction, with most displaying worse results than the previous month. Production (39.3) posted its second sub-40 result, while new orders (40.8) slipped back from an improved result in December. Employment (43.6) continued to show some lift in its value, but still showing significant contraction. Finished stocks (48.8) fell back from a small level of expansion, while deliveries of raw materials (41.9) exhibited its second worst outcome.

Unadjusted activity for January showed weakness in activity throughout the country. In the North Island, the Northern region (34.4) slipped in activity for the fifth consecutive time, while the Central region (40.7) also fell back to record its lowest ever result. In the South Island, there was a substantial drop for the Canterbury/Westland region (36.8), while the Otago/Southland region (48.4) went from slight expansion to decline in January, after four months of slight-moderate expansion.Click here to view the January PMI

Click here to view the PMI time series data

For media comment: Kathryn Asare, ph 04 496 6556 or 021 555 744.

BNZ - BusinessNZ PMI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI

Manufacturing Snapshot

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.

BNZ – BusinessNZ PMI Time Series

January 1966 – January 1970

International Results

J.P. Morgan Global Manufacturing PMITM

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