New orders boost – PMI 16 Apr 2021 63.6March+9.4Monthly Changeexpandingfaster rate Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing sector saw a strong boost in new orders and production during March, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for March was 63.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up 9.4 points from February, and the highest monthly result since the survey began in 2002.BusinessNZ's executive director for manufacturing Catherine Beard said that the March result was obviously a shot in the arm for the sector, although any single monthly movement needs to be treated with caution in the context of the current economic environment."The two major sub-index values of Production (66.8) and New Orders (72.5) were the main drivers of the March result, with the latter experiencing its first post 70-point value. This does indicate a swift shift in demand over a relatively short time, which may indicate a move towards previously shelved projects and business ventures that have now been given the green light"."Given the strong March result, the proportion of those outlining positive comments increased significantly from 46% in February to almost 58% in March. Unsurprisingly, comments were centred towards increased demand, both domestically and offshore".BNZ Senior Economist, Doug Steel noted that “more demand is one thing, but meeting it is another. Firms have faced many supply-side challenges. In this regard, it is interesting to see PMI deliveries of raw materials lifted strongly, to 62.8, this month. That coincides with other data showing imports leapt more than 17% above year earlier levels in March following prior weakness".View the Time Series Data Main Indicies Regional Results Manufacturing Snapshot Doug Steel Senior Economist, BNZ Ain't Seen Anything Like This BeforeMarch’s Performance of Manufacturing Index was unquestionably strong. Indeed, at 63.6, it is the strongest result in the survey’s history dating back to 2002. It is so strong that one immediately wonders if it is some sort of data quirk. But that is not obvious. Read more DemandDemand has lifted strongly. Precision on the reasons why changes occur is always difficult but more construction activity, a buoyant primary sector, increased government activity, movement toward domestic sourcing, and improving external demand were all understandably mentioned by respondents.Read more Supply IssuesMore demand is one thing, but meeting it is another. Firms have faced many supply-side challenges. In this regard, it is interesting to see PMI deliveries of raw materials lifted strongly, to 62.8, this month. That coincides with other data showing imports leapt more than 17% above year earlier levels in March following prior weakness.Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesMar2020Nov2020Dec2020Jan2021Feb2021Mar2021 BNZ - BusinessNZ PMI 38.155.148.457.454.263.6 Production31.255.252.559.758.466.8 Employment 44.951.249.956.250.253.5 New Orders37.856.950.561.658.072.5 Finished Stocks44.659.545.253.151.655.4 Deliveries40.151.544.948.948.162.8 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – March 2021 International ResultsJ.P. Morgan Global Manufacturing PMITM 1 Apr 202155.0 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 Doug Steel, 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