The BusinessNZ Performance of Manufacturing Index in New Zealand declined to 49.3 in December 2019 from 51.4 in the previous month and below market expectations of 50.6. New orders (51 vs 54 in November), production (48.2 vs 49.4) and deliveries (50.7 vs 52.6) declined. On the other hand, employment increased, still remaining in contraction territory (49.9 vs 49.1) and finished stocks rose (52.8 vs 49.2). “The December result was disappointing. After a couple of months flirting with positivity, the PMI dipped back just below the breakeven line again,” said BNZ Senior Economist, Craig Ebert. Manufacturing PMI in New Zealand averaged 53.27 points from 2002 until 2019, reaching an all time high of 62.80 points in June of 2004 and a record low of 36.10 points in November of 2008. source: Business New Zealand
Manufacturing PMI in New Zealand is expected to be 51.50 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Manufacturing PMI in New Zealand to stand at 53.40 in 12 months time. In the long-term, the New Zealand Manufacturing PMI is projected to trend around 54.00 points in 2020, according to our econometric models.