Sizzling Summer – PMI

11 Feb 2016

57.9

January

+0.9

Monthly Change

expanding

faster rate

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Catherine Beard

Executive Director,, ExportNZ & ManufacturingNZ

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New Zealand's manufacturing sector started 2016 with continued strength, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for January was 57.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.9 points up from December, and the highest level of expansion since October 2014. The sector has now been in continued expansion since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that the January result has started the new year off to a healthy start, with the key indicators of production (60.3) and new orders(59.8) showing strong growth. "Over two-thirds of manufacturers provided positive comments regarding their main influence on business activity, with increased sales both on a domestic and international basis. Other comments outlined the general positive sentiment occurring in the New Zealand economy."


BNZ Senior Economist Craig Ebert said "The other very agreeable feature of the latest PMI is the stoutness in its employment index. This gives us some confidence that staffing levels
in the sector will continue to expand".

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

The PMI

New Zealand's Performance of Manufacturing Index became even faster in January. At a seasonally adjusted 57.9 it edged past December's 14-month high of 57.0. The
strongest pulse was now coming through production, albeit with the new-orders index still very strong.

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Employment

The other agreeable feature of the latest PMI is the stoutness in its employment index. This index has averaged 50.5 since August
2002. Giving confidence that staffing levels in the sector will continue to expand.

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Housing

As the Reserve Bank stated back at its late-January OCR Review, "House price inflation in Auckland remains a financial stability risk. There are signs that the rate of increase may be moderating, but it is too early to tell.

Read more  

Exchange rate

NZD has retreated a long way from its level of around 88 US cents in mid-2014. But we believe it has further to go down this year, targeting 60 cents by mid-2016.

Read more .

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Jan
2015
Sep
2015
Oct
2015
Nov
2015
Dec
2015
Jan
2016
BNZ - BusinessNZ PMI 50.055.053.555.157.057.9
Production46.857.153.654.257.160.3
Employment 51.151.152.653.853.554.9
New Orders49.457.656.158.259.959.8
Finished Stocks54.152.849.650.554.853.6
Deliveries52.955.952.855.157.758.4

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2014 – January 2016

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Feb 2016

50.9

International PMI