Manufacturing continues expansion in January 2011 – PMI 17 Feb 2011 Manufacturing activity in January 2011 shows a positive start to the year with the fourth consecutive month in expansion, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for January stood at 53.7, up slightly from 53.2 in December (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). All five indices - production (52.8), employment (52.8), new orders (56.6), finished stocks (50.7) and deliveries (52.4) were all in expansion for the third consecutive month.BusinessNZ's executive director for manufacturing Catherine Beard said that the continued expansion of new orders over the last 5 months is an encouraging indicator that the expansion will continue, even if it is slow and steady."While new orders are looking reasonably robust, it is still a challenging manufacturing environment, with more negative comments to positive comments this month. We are predicting a slow and steady improvement in activity in the sector, once the receipts from our improving export performance start to trickle through the economy and increase domestic demand"."Globally, the JPMorgan Manufacturing PMI, which New Zealand is part of, also started the year on a good note for 2011 with the January value at a nine month high. Again, while New Zealand's position has improved, Australia is still struggling somewhat with softening domestic demand and a high dollar."BNZ economist Doug Steel said the economy's recent experience was neatly summed up by one respondent to the PMI survey this month as 'an economic rollercoaster'."Our view is that the outlook for 2011 is brighter, but no doubt the rollercoaster ride will continue within the context of a likely improving trend. Today's further improvement (albeit minor) in the PMI is a small step in the right direction."Unadjusted results by region showed three of the four regions in contraction during January, going backwards by 2 to 4 points. The Northern region was down 2.7 points (49.2), while the Central region was down 4.1 points (49.0). In the South Island, the Otago/Southland region was down 4.3 points (57.0), while Canterbury/Westland (43.1) fell back 5.3 points from December.Click here to view the January PMIClick here to view the PMI time series dataFor media comment:Catherine Beard 04 496 6560 or 027 463 3212Doug Steel 04 474 6923 For more information or assistance with data interpretation, contact Stephen Summers, ph 04 496 6564, ssummers@businessnz.org.nz. We acknowledge the ongoing support of our sponsor The BNZ - BusinessNZ Performance of Manufacturing Index (PMI) is proudly sponsored by BNZ and draws on the depth of member companies associated with BusinessNZ: Major Sponsor Supporting Partners In this section Media Releases Commentaries Photos Back to Business Cocktail Party 2019 State of the Nation Lunch Back to Business 2020 Deloitte and Chapman Tripp Election Conference 2020 - Leaders' Address Back to Business 2021 PMI Results July ReleaseValue: 52.7Change: +2.7Status: expanding Learn more . BNZ - BusinessNZ PMI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI. Related Articles On the margins – PMI Mid year blues – PMI Soldering on – PMI Slow grind – PMI Slowly does it – PMI View more Sponsor StatementBNZ 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. View website