Producing the goods – PMI

15 Dec 2017




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Catherine Beard

Director, Advocacy BusinessNZ

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New Zealand's level of manufacturing activity during November returned to September's expansion result, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for November was 57.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.4 points up from the previous month, and returned the sector back to September's result.  It also continues the relatively tight band of expansion seen over the last four months.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that the sector is heading towards a stronger second half of the year.

"The sub index value for production (62.1) was at its highest level of expansion since July 2013, while finished stocks (57.5) was the highest recorded since the survey began, just pipping the 57.4 recorded in September 2014.  Also, the proportion of positive comments in November (65.1%) increased slightly from October (64.2%).

BNZ Senior Economist, Doug Steel, said that "recent surveys have seen business confidence falter during and after the government formation process.  In contrast, the PMI, which is a survey of business outcomes rather than sentiment has remained rock solid over recent months".

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Main Indicies

Regional Results

Manufacturing Snapshot

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Doug Steel

Senior Economist, BNZ

Rock Solid

Various recent surveys have seen business confidence falter during and after the government formation process. In contrast, the Performance of Manufacturing Index (PMI), notably a survey of business outcomes rather than sentiment, has remained rock solid over recent months.
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GDP Supportive

In the November PMI details, production led the charge with the index punching up to a very strong 62.1 – its highest level since mid-2013. This follows an already firm 60.9 reading in October and an average of 59.0 in the three months to September.
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Things To Watch

For all the strength within the PMI, there are some details worth monitoring as possible vulnerabilities. One is a further lift in the PMI inventories index in November to its highest level since the survey started back in 2002.
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View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesNov
BNZ - BusinessNZ PMI 54.655.558.057.757.357.7
Employment 48.755.956.651.151.654.2
New Orders58.955.759.160.759.957.6
Finished Stocks50.356.

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BNZ - BusinessNZ PMI Time Series

January 2018 – November 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Dec 2017


International PMI