Sticky Gear – PMI 11 Feb 2022 52.1January-1.7Monthly Changeexpandingslower rate Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing sector saw a reduction in the level of expansion for the first month of 2022, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for January was 52.1 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 1.7 points lower than December, and below the long-term average of 53.1 for the survey.BusinessNZ's Director, Advocacy Catherine Beard said that despite the PMI being in expansion since September, it has struggled to gain any real expansionary momentum. The constantly changing COVID-19 related rules and sanctions are obviously a key inhibiter for certainty and planning, which will likely continue for some time yet given the expected wide spread of Omicron in New Zealand. "In terms of the main sub-indices, Production (51.2) and New Orders (53.3) both fell back from healthy levels of expansion in December, while Employment (49.2) fell back into contraction. These lower activity levels also saw the proportion of negative comments increasing from 49.5% in December to 63.1% in January."BNZ Senior Economist, Doug Steel stated that, “January’s PMI results feel like something of a placeholder before Omicron hits proper over coming months along with anticipated higher rates of absenteeism and disruption."View the Time Series Data Main Indicies Regional Results Doug Steel Senior Economist, BNZ PMIThe Performance of Manufacturing Index (PMI) has continued its recent sequence of oscillating around its long-term average. January’s 52.1 reading was a bit under the long-term norm of 53.1, after December’s somewhat perkier 53.8.Read moreQuestionsBut the details do raise some questions about what is going on beneath the surface. The production index eased to a slow looking 51.2 in January. Maybe this is just some ‘payback’ from December’s very strong 56.2.Read moreIs demand slowing?The PMI new orders index fell to 53.3 from December’s 57.1. This is not that far below the long-term norm of 55.0, but it is the lowest reading since the lockdown back in August. It makes one wonder if demand has slowed into the New Year.Read moreWhat next?In any case, it has to be said, January’s PMI results feel like something of a place holder before Omicron hits proper over coming months along with anticipated higher rates of absenteeism and disruption.Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesJan2021Sep2021Oct2021Nov2021Dec2021Jan2022 BNZ - BusinessNZ PMI 57.751.754.651.353.852.1 Production60.250.353.553.056.251.2 Employment 56.454.051.948.652.149.2 New Orders61.954.554.755.657.153.3 Finished Stocks52.650.154.848.753.252.8 Deliveries48.847.660.244.651.453.8 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – January 2022 International ResultsJ.P. Morgan Global Manufacturing PMITM 1 Feb 202253.2 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 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. 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