BNZ – BusinessNZ
Performance of
Manufacturing
Index

Slowly does it – PMI

14 Apr, 2022
53.8
March
+0.2

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector saw another, albeit slight, improvement in its level of expansion, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for March was 53.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.2 points higher than February, and above the long-term average of 53.1 for the survey.

BusinessNZ’s Director, Advocacy Catherine Beard said that the March result was another encouraging step towards getting the sector back on track.     

“In terms of the main sub-indices, New Orders (61.0) continued its healthy momentum upwards, although Production (50.9) did fall back to its level of expansion experienced in January. Employment (52.4) rose to its highest level since September 2021, while Finished Stocks (53.5) also picked up to its highest result since October 2021.”

Comments from manufacturers were still firmly in negative territory (64.2%), although down from 69.9% in February.  Unsurprisingly, COVID dominates discussion, with supply chain disruptions one of the key outcomes.

BNZ Senior Economist, Doug Steel stated that “Omicron’s impact may not be as harsh as the first 2020 COVID lockdown or last year’s Delta lockdown, but it’s there. Production has struggled, with the index slipping to 50.9 in March and a bit further below its long-term average.”

Catherine Beard

Catherine Beard

Director, Advocacy BusinessNZ

BNZ - BusinessNZ PMI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI

Manufacturing Snapshot

PMI

March’s Performance of Manufacturing Index (PMI) looks good at the headline level, but it is not without a decent chunk of bother in the detail.
Read more

The positives

New orders stood head and shoulders above other components, both outright and compared to normal.  March’s 61.0 outcome, which is a decent push up from February’s already solid 58.6, is a full 6 points above its long-term norm.
Read more

Omicron impact

Strong new orders indicate people want stuff done. The challenge for manufacturers has been not enough people, or materials, or capacity, or all of the above, to do it.
Read more

Juxtaposition

It is peculiar to see a firmly positive PMI while the number of negative comments from respondents significantly outweigh positive comments. Indeed, negative comments outweighed positive comments in March by a factor of two to one.
Read more

Doug Steel

Doug Steel

Senior Economist, BNZ

Sponsor Statement

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.

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Mar
2021
Nov
2021
Dec
2021
Jan
2022
Feb
2022
Mar
2022
BNZ – BusinessNZ PMI 63.5 51.4 53.9 52.3 53.6 53.8
Production 66.7 53.1 56.2 50.9 51.7 50.9
Employment 53.7 48.6 52.3 49.8 52.0 52.4
New Orders 72.4 55.6 57.4 53.8 58.6 61.0
Finished Stocks 55.3 48.8 53.0 52.5 50.2 53.5
Deliveries 64.8 44.4 51.4 53.8 53.1 51.9

BNZ – BusinessNZ PMI Time Series

March 2018 – March 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Apr 2022
52.7

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

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Activity in New Zealand’s manufacturing sector dropped further during October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for October was 42.5 (a PMI reading above 50.0 indicates that manufacturing is...

Our Contributors

The BNZ – BusinessNZ PMI contains data obtained through BusinessNZ’s regional organisations