BNZ – BusinessNZ
Performance of
Manufacturing
Index

Autumn tinge – PMI

13 Jul, 2018
52.8
June
-1.6

Monthly Change

expanding
slower rate

New Zealand’s level of manufacturing expansion experienced a dip in June, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 52.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.6 points lower than May, and the lowest level of monthly expansion since December 2017, which stood at 51.0.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the slow-down in expansion was mainly due to ongoing drops in a key sub-index.

“Production (51.8) experienced another decrease in expansion levels for June, which meant it was down to its lowest point since January 2017.  On a positive note, the other key sub-index of New Orders (57.1) remained in healthy territory, which at least should feed through to production levels in the coming months.    

In addition, the proportion of positive comments in June (51.7%) decreased from May (55.1%), and very similar to February (51.4%).  Those who provided negative comments typically noted a general downturn and uncertainty in the market”.   

BNZ Senior Economist, Craig Ebert said that “broadly speaking, the PMI has settled down into a trend-like pace this year, averaging 53.8 (excluding April’s spike). This is after outperformance through most of 2017, when it averaged 56.2”.

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

The PMI

New Zealand’s Performance of Manufacturing Index (PMI) slowed further in June. Its seasonally adjusted reading of 52.8 was lower than May’s 54.4 (and with a fair bit of variation in its detail, to boot).
Read more

Orders

The deceleration in the PMI over the last couple of months has been well characterised by its production index. This was raging away at 60.5 in April, but cooled to 53.4 in May and to 51.8 in June.
Read more

Employment

But if there was a red flag in June’s PMI it was in its jobs index. A flat to negative result on this component is not necessarily alarming. But two in a row can start to ask some questions.
Read more

Capacity

Even with the wobbles in the PMI of late, it’s not as if the industry appears any less stretched than it was 6 to 12 months ago. Sure, its capacity utilisation measure (CUBO), as from the QSBO, fell to 92.7% in the June quarter.
Read more

Craig Ebert

Craig Ebert

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 Jun
2017
Feb
2018
Mar
2018
Apr
2018
May
2018
Jun
2018
BNZ – BusinessNZ PMI 56.0 53.4 53.3 59.1 54.5 52.8
Production 57.9 54.0 52.4 60.5 53.4 51.8
Employment 49.8 54.6 53.1 54.2 49.6 49.0
New Orders 57.7 54.5 54.8 60.1 56.7 57.1
Finished Stocks 54.4 51.3 54.2 55.1 51.6 50.2
Deliveries 56.9 52.9 54.6 60.8 58.4 51.3

BNZ – BusinessNZ PMI Time Series

June 2018 – June 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 Jul 2018
53.0

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.

PMI Releases

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On the margins – PMI

New Zealand's manufacturing sector rose back into expansion for July, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for July was 52.7 (a PMI reading above 50.0 indicates that manufacturing is generally...

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Soldering on – PMI

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Slow grind – PMI

New Zealand’s manufacturing sector experienced a lower level of expansion during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Our Contributors

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