Stocked up – PMI

18 Jan 2019

55.1

December

+1.4

Monthly Change

expanding

faster rate

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Catherine Beard

Executive Director,, ExportNZ & ManufacturingNZ

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New Zealand's manufacturing sector experienced a positive end to 2018, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for December was 55.1 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.4 points up from November, and the highest level of overall activity since April.

BusinessNZ's executive director for manufacturing Catherine Beard said that the December result ensured activity over 2018 kept ahead of the long-term results for the sector.

"2018 averaged 53.8 in activity, slightly ahead of the overall average of 53.4 since the survey began.  However, it was still a noticeable dip in expansion compared with 56.2 over 2017 and 56.0 over 2016.     

Looking at the main sub-index values, new orders (56.1) still remains in healthy territory, although it was interesting to note that finished stocks (58.6) was at its highest level since the survey began.

In addition, the proportion of positive comments for December (60.6%) was slightly up from November (60.1%).  Seasonal factors were again a major discussion point, with the Christmas period dominating comments". 

BNZ Senior Economist, Craig Ebert said that "the latest NZ PMI result is all the more encouraging in the context of slowing growth in global manufacturing. The latter is part of what’s casting clouds around international GDP growth expectations, going into 2019".

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 (PMI) ended 2018 on a robust note. Its seasonally adjusted reading, of 55.1, was confidently back above its long-term norm (53.4).
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Global

The latest NZ PMI result is all the more encouraging in the context of slowing growth in global manufacturing. The latter is part of what’s casting clouds around international GDP growth expectations, going into 2019.
Read more

QSBO

Even now, not everything about New Zealand’s manufacturing industry is as encouraging as December’s PMI indicated. Tuesday’s NZIER Quarterly Survey of Business Opinion (QSBO), for example, registered a tone of struggle regarding manufacturing output over the prior 3 months.
Read more

Capacity/Pricing

Encouragingly, the latest QSBO registered a much-recovered view on investment spending amongst manufacturers.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesDec
2017
Aug
2018
Sep
2018
Oct
2018
Nov
2018
Dec
2018
BNZ - BusinessNZ PMI 50.852.352.153.853.755.1
Production52.452.650.153.251.955.7
Employment 51.649.350.852.351.252.2
New Orders51.053.353.057.056.356.1
Finished Stocks50.752.052.853.555.358.6
Deliveries49.554.052.550.953.058.5

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2014 – December 2019

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Jan 2019

51.5

International PMI