Summer slowdown – PMI 19 Jan 2018 51.2December-6.5Monthly Changeexpandingslower rate Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's level of manufacturing expansion slowed during December, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for December was 51.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 6.5 points down from the previous month, and the lowest result since December 2012. Despite the drop from November, the sector has remained in expansion in all months since October 2012.BusinessNZ's executive director for manufacturing Catherine Beard said that while it was disappointing to see the last month of 2017 showing a sizeable dip in expansion levels, the wider context of the results needs to be taken into account."While all sub-indexes dropped in December, they all still remain in expansion. Also, the proportion of positive comments in December (63.3%) was very close to the November result (65.1%). Christmas and the general holiday season were mentioned for those who provided both positive and negative comments, along with weather conditions. Overall, we'll be looking to the January result to see if the sector gets back into the level of expansion its been accustomed to in recent times.BNZ Head of Research, Stephen Toplis, said that "anecdotal evidence, across the economy, suggests there was a post-election hiccup in activity as businesses put off major spending, investment and hiring decisions until there was greater clarity and, more importantly, understanding of likely policy shifts. Today’s data are consistent with this hypothesis".View the Time Series Data Main Indicies Regional Results Stephen Toplis Head of Research, New Zealand, BNZ Aberration or Warning SignAn aberration or a warning sign of things to come? That’s the question on our lips as we look at the data provided in the December Performance of Manufacturing Index (PMI).Read more Widespread RetreatMoreover, all components of the index were in retreat with production levels, new orders and deliveries of raw materials driving the slowdown.Read more GDP Headed Sub-ConsensusAs things stand, we are already forecasting a subconsensus 0.5% increase for Q4 economy-wide GDP. There appears to be increasing downside risk to this pick.Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesDec2016Aug2017Sep2017Oct2017Nov2017Dec2017 BNZ - BusinessNZ PMI 54.858.057.757.357.751.2 Production58.560.559.760.761.753.3 Employment 52.456.751.151.154.151.3 New Orders54.059.060.659.857.350.2 Finished Stocks52.652.955.454.956.751.9 Deliveries54.956.158.358.058.850.0 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – December 2018 International ResultsJ.P. Morgan Global Manufacturing PMITM 2 Jan 201854.5 In this section Surveys & Statistics Performance of Manufacturing Index Performance of Services Index Compliance Cost Survey Exporters Survey Southern Cross Health Society - BusinessNZ Wellness in the Workplace Survey Reports & Publications BusinessNZ Planning Forecast International BusinessNZ RAT Suppliers Guides & Tools BusinessNZ RAT Suppliers RATs for non-critical business, agencies and organisations BNZ - BusinessNZ PMI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI BNZ 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 Media Comment For media comment, please contact: Catherine Beard, BusinessNZ 04 496 6560 Stephen Toplis, BNZ 04 474 6799 Technical Comment For more information or assistance with data interpretation, please contact: Steve Summers 04 496 6564 ssummers@businessnz.org.nz Our Contributors The BNZ - BusinessNZ PMI contains data obtained through BusinessNZ's regional organisations About the PMI The BNZ - BusinessNZ Performance of Manufacturing Index is a monthly survey of the manufacturing sector providing an early indicator of activity levels.A PMI reading above 50 points indicates manufacturing activity is expanding; below 50 indicates it is contracting.The main PMI and sub-index results are seasonally adjusted. Related Articles Blooming good – PMI Steady state – PMI Now hiring – PMI Stretching out – PMI Pumping production – PMI View more