Marching orders – PMI

13 Apr 2017

57.8

March

+2.1

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 further in March, with new orders leading the way, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).
 
The seasonally adjusted PMI for March was 57.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.1 points higher than February, and the highest level of expansion since January 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 across all sub-indices.
 
"The key sub-indices of production (60.4) and new orders (64.3) were both above the 60 point mark for the first time since September 2016, with the latter at its highest level of expansion since June 2004".
 
"In addition, the pick-up in overall activity was mirrored by a corresponding lift in the proportion of positive comments, rising from 61.7% in February to 67.2% in March".  

BNZ Senior Economist, Craig Ebert, said that "while the recent rebound has been in all the right places, it's new orders that have stood out head and shoulders.  This is a good sign that production will sustain its strong momentum".

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Main Indicies

Regional Results

Manufacturing Landscape
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Craig Ebert

Senior Economist, BNZ

The PMI

What a difference a couple of months make. Having slowed right down to 53.2 in January, New Zealand's Performance of Manufacturing Index (PMI) surged to a very strong 57.8 in March.
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QSBO and Capacity Constraint

The narrative of rebound from the March PMI tallied with what we saw in the manufacturing component of last week's NZIER Quarterly Survey of Business Opinion (QSBO).
Read more  

Industry

The rebound in the PMI has reflected substantive gains in the very industries that lagged so much back in January.
Read more  

Inventory

The latest QSBO also gives us an opportunity to look into the inventory cycle. We mention this, with the manufacturing industry's stocks having built up quite a bit in the Q4 GDP accounts.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Mar
2016
Nov
2016
Dec
2016
Jan
2017
Feb
2017
Mar
2017
BNZ - BusinessNZ PMI 53.454.454.553.255.757.8
Production53.757.657.649.257.860.4
Employment 49.349.251.852.151.453.4
New Orders57.857.852.853.558.264.3
Finished Stocks54.550.252.050.955.652.6
Deliveries51.553.154.653.454.353.9

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – March 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
3 Apr 2017

53.0

International PMI