Easing back – PMI 12 Mar 2021 53.4February-4.6Monthly Changeexpandingslower rate Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing sector saw a slower rate of expansion during February, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for February was 53.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was down 4.6 points from January.BusinessNZ's executive director for manufacturing Catherine Beard said that the February result was more in line with the long term average of the PMI (53.0)."The major sub-index values were all down from January, with Production (57.3) leading the way, followed by New Orders (56.2). Both Employment (49.8) and Deliveries (47.6) remained in contraction, with the former reverting back to levels seen in December.""Despite the PMI remaining in expansion, the proportion of those outlining negative comments stood at 54%, compared with 46% in January. Given the second recent partial lockdown, it remains to be seen what impact this will have on the sector over the next few months."BNZ Senior Economist, Craig Ebert said that “supply issues were to the fore from respondents’ comments to February’s PMI survey. Of those citing negative factors, supply rather than demand problems dominated, with frequent references to supply chains, shipping, freight, costs, and difficulties in finding suitable staff."View the Time Series Data Main Indicies Regional Results Manufacturing Snapshot Craig Ebert Senior Economist, BNZ PMIWith its 53.4 for February, the Performance of Manufacturing Index (PMI) slipped back to about average. This was after a strong January (58.0) and an unusually weak December (48.3). Average was also the motto of the PMI’s 3-month running mean, with its 53.3 being very close to the long-term average of 53.0. Read more Supply issuesThis left the deliveries of raw materials index as the laggard in the PMI. At 47.6 in February this was the sixth month of the last seven in being below the 50 breakeven mark (versus a long term norm of 52.9).Read more Manufacturing salesNonetheless, as mentioned earlier, the production signals from the PMI remained upbeat through February. Granted, this did not appear consistent with Tuesday’s December quarter manufacturing data.Read more ForestryNew Zealand’s forestry sector has recovered strongly, post the lockdowns of autumn 2020. To be sure, wood and paper products comprise only 9% of total NZ manufacturing output (as per the GDP accounts), versus 31% for food, beverage and tobacco products.Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesFeb2020Oct2020Nov2020Dec2020Jan2021Feb2021 BNZ - BusinessNZ PMI 54.152.254.948.358.053.4 Production54.951.955.452.459.357.3 Employment 51.552.351.349.856.149.8 New Orders56.253.256.750.562.856.2 Finished Stocks53.549.359.545.352.951.2 Deliveries53.649.151.645.048.847.6 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – February 2021 International ResultsJ.P. Morgan Global Manufacturing PMITM 1 Mar 202153.9 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 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 Media Comment For media comment, please contact: Catherine Beard, BusinessNZ 04 496 6560 Craig Ebert, 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