BNZ – BusinessNZ
Performance of
Manufacturing
Index

Back in black – PMI

17 Jul, 2020
56.3
June
+16.5

Monthly Change

expanding
previously contracting

New Zealand’s manufacturing sector showed expansion for the first time since February, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 56.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was up 16.5 points from May, and the highest result since April 2018.

BusinessNZ’s executive director for manufacturing Catherine Beard said that a return to expansion for the sector was obviously a welcome result given the very difficult period experienced over the last three months.  However, given the path towards recovery has simply meant trying to get back to standard operational levels for many, it was just a matter of time before the sector would be back in black.    

“Leading the way were the key indices of production and new orders (both at 58.6).  Like the main result, these were at the highest level of expansion since April 2018. 

Overall, we should remain cautious that one expansionary result does not represent a trend given ongoing offshore uncertainty around COVID-19.  A consistent trail of new orders over the coming months would go a long way towards ensuring the second half of 2020 is better than the first.  

BNZ Senior Economist, Doug Steel said that “New Zealand’s PMI average through April and May was at the bottom when looking across usual comparator countries.  But with the country at alert level 1, activity has picked up. Long may it continue”.

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

A Spark

We openly discussed in last month’s commentary that the Performance of Manufacturing Index (PMI) had the potential to show ‘a bit more spark’ in June. And it has.  The PMI lifted to an expansionary 56.3 in June from a sombre 39.8 in May and a dreadful 26.0 back in April.
Read more

Reopening In A Very Tough Quarter

The reopening of the economy post-lockdown, including the move to COVID alert level 1 on the night of 8 June, has seen more activity take place compared to prior months.  But June’s positive result is not enough to rescue the second quarter of the year overall, through which the PMI averaged a very weak 40.7.
Read more

Employment Still Falling

All major PMI components printed above their respective long-term averages in June, except for employment. At 48.5, not only was the employment index below its long-term average of 50.5 but it was also sub-50 indicating the manufacturing sector continues to shed staff.
Read more

Turning Tables

NZ’s PMI is now higher than other countries we often compared ourselves to. This follows a period of NZ underperformance. The turnaround tallies with suggestions that NZ is enjoying more freedoms than many elsewhere after undergoing COVID restrictions that were tighter than most.
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 June
2019
Feb
2020
Mar
2020
Apr
2020
May
2020
Jun
2020
BNZ – BusinessNZ PMI 51.3 54.1 37.3 26.0 39.8 56.3
Production 51.3 54.7 31.2 19.1 38.1 58.6
Employment 48.3 51.1 44.9 41.3 39.2 48.5
New Orders 52.7 56.5 36.6 17.4 39.5 58.6
Finished Stocks 56.5 52.9 44.5 37.4 41.5 56.6
Deliveries 48.5 53.2 39.2 25.4 41.1 57.3

BNZ – BusinessNZ PMI Time Series

June 2018 – June 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Jul 2020
47.8

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

Building blocks – PMI

New Zealand's manufacturing sector saw another lift in expansion for August, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for August was 54.9 (a PMI reading above 50.0 indicates that manufacturing is...

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...

Mid year blues – PMI

New Zealand’s manufacturing sector fell back into contraction for the first time since the most recent national lock-down in August 2021, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

Soldering on – PMI

New Zealand’s manufacturing sector remained under its long-term average level of activity for May, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

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