Pros and cons – PMI

11 Mar 2022

53.6

February

+1.3

Monthly Change

expanding

faster rate

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Catherine Beard

Director, Advocacy BusinessNZ

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New Zealand's manufacturing sector saw a lift in the level of expansion for February, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for February was 53.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.3 points higher than January, and above the long-term average of 53.1 for the survey.

BusinessNZ's Director, Advocacy Catherine Beard said that there were certainly some positive signs with the February result.  However, this needed to be balanced with the wider spread of Omicron potentially affecting business plans in the months ahead, as well as comments from manufacturers still firmly in negative territory (69.9%).        

"In terms of the main sub-indices, New Orders (58.2) increased to its highest level since July 2021, while Production (52.1) did experience a slight improvement, although still at its second lowest value since September 2021. Employment (51.7) rose back into expansion, while Finished Stocks (50.0) dropped to its lowest result since November 2021."

BNZ Senior Economist, Craig Ebert stated that “underlying unease will certainly be piqued by the sustained high COVID case numbers as we go into March.  The next PMI result may also see fallout from the Russia/Ukraine conflict, whose global impacts will be felt far and wide."

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Snapshot

View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

PMI

February’s Performance of Manufacturing Index (PMI) proved resilient to Omicron’s onset. Its seasonally adjusted outcome of 53.6 was not only better than January’s 52.3, but was a nudge above its long-term norm, of 53.1.
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Ordering up more production

The good news extended to the fact the PMI new orders index jumped to a 58.2, from 53.6 in January. While this sub-index does tend to average higher than the other sub-indices, its outcome for February was comfortable above that mark.
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Mixed undercurrents

Having said all of this, not everything about this latest PMI was positive. In unadjusted terms, 4 out of the 9 industries were in contraction mode, including 44.7 for Wood & Paper Manufacturing.
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Global watch

Underlying unease will certainly be piqued by the sustained high COVID case numbers as we go into March. We will watch the next PMI result also wary of fallout from the Russia/Ukraine conflict, whose global impacts will be felt far and wide.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesFeb
2021
Oct
2021
Nov
2021
Dec
2021
Jan
2022
Feb
2022
BNZ - BusinessNZ PMI 54.854.751.453.952.353.6
Production59.653.653.056.251.152.1
Employment 50.051.948.652.249.551.7
New Orders58.454.655.657.453.658.2
Finished Stocks52.854.748.753.152.550.0
Deliveries49.760.144.451.554.053.5

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2018 – February 2022

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Mar 2022

53.6

International PMI