BNZ – BusinessNZ
Performance of
Manufacturing
Index

On a Brighter Note – PMI

21 Jan, 2022
53.7
December
+2.5

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector saw an improvement in expansion levels for the last month of 2021, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for December was 53.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.5 points higher than November.

BusinessNZ’s Director, Advocacy Catherine Beard said that 2021 was close to a year of two halves, with January-July showing generally strong expansion due to playing catch-up from the effects of the 2020 lockdowns.  The remaining months of 2021 have been lacklustre, so it remains to be seen whether the sector experiences another period of catch-up heading into 2022.  

“In terms of the main sub-indices, it was pleasing to see both Production (56.4) and New Orders (57.5) recording their highest values since July 2021.  Employment (52.0) went back into expansion, as did Finished Stocks (52.8).”

BNZ Senior Economist, Doug Steel stated that “in the final quarter of 2021 the PMI averaged 53.2, indicating a return to positive manufacturing GDP growth after a sharp negative in the prior quarter.”

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

The Performance of Manufacturing Index (PMI) improved in December after underwhelming in November. It lifted to 53.7 from 51.2. This continues the PMI’s recent oscillation around its long-term average, of 53.1, following the heavy knock it took in August last year when it fell to 39.9 (as Delta appeared in the community along with associated restrictions).
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Positive

Production lifted to 56.4 and new orders rose to 57.5, both their strongest readings since July (pre-Delta). Employment rose to 52.0, after a strange-looking drop in November, while stocks bounced from a dip in the previous month.
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Challenges Remain

Deliveries of raw materials remains a clear outlier among the sub-components. While this indicator did lift to 50.0 in December from a very weak 43.9 in November, it remains below its long-term average of 52.9.
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Some Severe

Today’s PMI was generally a bit more upbeat than the NZIER’s latest Quarterly Survey of Business Opinion (QSBO) was for manufacturers regards the likes of activity, employment, and new orders. Some of this may reflect timing.
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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 Dec
2020
Aug
2021
Sep
2021
Oct
2021
Nov
2021
Dec
2021
BNZ – BusinessNZ PMI 47.3 39.9 51.7 54.6 51.2 53.7
Production 52.0 26.9 50.4 53.6 53.0 56.4
Employment 49.2 54.0 54.0 51.9 48.5 52.0
New Orders 48.6 44.2 54.5 54.6 55.4 57.5
Finished Stocks 42.6 45.9 50.3 54.6 48.7 52.8
Deliveries 42.7 33.0 47.9 60.2 43.9 50.0

BNZ – BusinessNZ PMI Time Series

December 2017 – December 2021

International Results

J.P. Morgan Global Manufacturing PMITM

04 Jan 2022
54.2

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]

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Activity in New Zealand’s manufacturing sector dropped further during October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for October was 42.5 (a PMI reading above 50.0 indicates that manufacturing is...

Our Contributors

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