New Zealand NZD

New Zealand Composite NZ PCI

Impact:
Low

Latest Release:

Date:
Surprise:
-1.6
Actual:
48.8
Forecast: 50.4
Previous/Revision:
50
Period: Nov

Next Release:

Date:
Period: Dec
What Does It Measure?
The New Zealand Composite Purchasing Managers' Index (PCI) measures the overall economic performance of the country's manufacturing and services sectors. It primarily focuses on production levels, employment trends, new orders, and supplier deliveries, providing a snapshot of economic health; a reading above 50 indicates expansion, while below 50 indicates contraction, serving as a national indicator.
Frequency
The New Zealand Composite PCI is released monthly, typically on the first business day of the month, and consists of preliminary estimates that may be revised in later reports.
Why Do Traders Care?
Traders closely monitor the PCI because it serves as a leading indicator of economic activity, influencing market expectations regarding economic growth and monetary policy. Stronger-than-expected results can bolster the New Zealand Dollar and equity markets, while weaker figures may prompt declines in both currencies and stock prices.
What Is It Derived From?
The Composite PCI is derived from a survey of purchasing managers across multiple sectors, specifically in manufacturing and services, with a focus on their perspectives regarding production, orders, supply delivery times, and employment. The index is calculated using a diffusion index approach, wherein responses are weighted to reflect the proportion of sectors represented, with a survey size often around 150 to 200 respondents.
Description
The Composite PCI combines data from the manufacturing and service sectors to offer a comprehensive view of economic activity in New Zealand. It represents a crucial measure for assessing economic growth trends, with its preliminary version providing timely insights that are subject to later revisions based on more accurate data collection processes.
Additional Notes
As a leading economic measure, the Composite PCI provides valuable insights into future economic activity and is often compared with other indicators such as the GDP growth rate and employment statistics. Its ability to reflect on both manufacturing and service sectors allows for a holistic assessment of economic conditions in New Zealand relative to global standards.
Bullish or Bearish for Currency and Stocks
Higher than expected: Bullish for NZD, Bullish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
48.8
50.4
50
-1.6
50.2
49.5
49.1
0.7
49
51
48.5
-2
48.4
50.7
50.6
-2.3
50.5
49.4
48.7
1.1
48.3
46
45.4
2.3
44.3
48.2
47.8
-3.9
48.2
50.6
49.4
-2.4
51.2
50.5
50.7
0.7
50.7
51
50.9
-0.3
50.8
47.5
47.5
3.3
46.9
48
47.9
-1.1
47.9
46.8
46.2
1.1
46.2
47.3
46.4
-1.1
46.4
48.9
45.8
-2.5
45.6
45
44.3
41.3
40.9
3
40.9
43.8
44.7
-2.9
44.7
48
47.3
-3.3
47.6
48.7
46.6
-1.1
46.8
52.6
50.9
-5.8
51.3
51.1
50.2
0.2
50
47.7
46.9
2.3
46.8
49.6
49
-2.8
49.2
45.7
46.4
3.5
46.1
48.4
48.6
-2.3
48.8
47
47.1
1.8
46.8
46.5
47.5
0.3
47.1
48.2
48.7
-1.1
48.9
49.9
50.7
-1
50.8
48
48.5
2.8
48.5
49.6
50
-1.1
50.3
51.9
53.5
-1.6
53.7
51.2
51.8
2.5
51.5
50
50.6
1.5
50.5
51.9
50.6
-1.4
50.8
52.5
52.8
-1.7
53.1
52.9
54.1
0.2
54.4
55.1
57.5
-0.7
Broker Rebates