Orderly business – PMI

17 Mar 2017

55.2

February

+3.0

Monthly Change

expanding

faster rate

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Catherine Beard

Executive Director, ManufacturingNZ & ExportNZ

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New Zealand's manufacturing sector saw activity increase in February after a dip in expansion during January, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).
 
The seasonally adjusted PMI for February was 55.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 3.0 points higher than January, and the highest level of expansion since September 2016.  Overall, the sector has remained in expansion in almost all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that it was pleasing to see the sector pick up after January's dip due to mostly seasonal factors.
 
"While a few respondents continued to outline negative seasonal factors impacting their overall activity levels during February, the 61.7% of positive comments received pointed to increased orders, both at a domestic and offshore level". 

BNZ Senior Economist, Craig Ebert, said "it was good to see the PMI bounce in February.  Had it not, we would have become a little apprehensive about the way it was going".

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

The PMI

It was good to see New Zealand's Performance of Manufacturing Index (PMI) bounce in February. Had it not, we would have become a little apprehensive about the way it was going.
Read more  

Manufacturing GDP

February's PMI is particularly encouraging in suggesting the weak manufacturing result we saw in yesterday's Q4 GDP report was transitory rather than the start of a genuine struggle.
Read more  

Forestry

The local forestry industry is doing well. That said, its activity in the final quarter of 2016 eased from the level it spiked to in Q3.
Read more  

Exchange Rate

Supporting New Zealand's manufacturing sector, in general, has been the recent moderation in the currency. Aided by a resurgent US dollar, NZD/USD (and NZD/CNY, for that matter) has dropped about 5% since early February.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Feb
2016
Oct
2016
Nov
2016
Dec
2016
Jan
2016
Feb
2017
BNZ - BusinessNZ PMI 55.355.154.454.352.255.2
Production56.157.857.257.051.756.8
Employment 49.653.249.352.051.651.4
New Orders58.654.957.852.853.157.2
Finished Stocks55.252.750.252.050.955.1
Deliveries55.555.553.154.653.354.0

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – February 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Mar 2017

52.9

International PMI