BNZ – BusinessNZ
Performance of
Manufacturing
Index

Below par – PMI

12 Jul, 2019
51.3
June
+0.9

Monthly Change

expanding
faster rate

Activity in New Zealand’s manufacturing sector picked up slightly in June, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 51.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.9 points up from May, but still the fourth consecutive monthly result below the long-term average of 53.4 for the survey.

BusinessNZ’s executive director for manufacturing Catherine Beard said that while the sector avoided further deterioration in activity from May, there were still a number of concerns about manufacturing’s current state of play.

“The key sub-indexes of production (51.0) and new orders (52.8) recovered from May, which ensured the sector didn’t fall into contraction for June.  However,  employment (48.0) worsened to its lowest level since August 2016, while deliveries of raw materials (48.9) also fell into negative territory for the first time since December 2017, and its lowest result since September 2012.

The proportion of positive comments for June (42.9%) feel back markedly from May (54.3%).  Soft and slow market activity tended to dominate negative comments, along with a fair degree of uncertainty present.

BNZ Senior Economist, Craig Ebert said that “the latest PMI might best be described as doing doggy paddle, with both ups and downs around some of the main PMI sub-index values”.

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

With its nostrils just above the water line, the latest Performance of Manufacturing Index (PMI) might best be described as doing doggy paddle.
Read more

QSBO

To be more charitable about June’s PMI would be to distinguish it from the manufacturing section of the latest NZIER Quarterly Survey of Business Opinion (QSBO). This was, to put it mildly, struggling.
Read more

Employment

Arguably the most worrying statistic in the QSBO’s manufacturing element, however, was to do with recent employment. This index, regarding the last 3 months’ hiring, plunged to -36, from about zero the preceding quarter. This was spookily GFC-like.
Read more

Capacity/Pricing

To help understand the stuttering in many of the manufacturing activity indices, it’s hard to go past the range of resource-constraint gauges. Take the QSBO’s capacity utilisation variable, CUBO.
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
2018
Feb
2019
Mar
2019
Apr
2019
May
2019
Jun
2019
BNZ – BusinessNZ PMI 52.7 53.4 51.7 52.8 50.4 51.3
Production 51.3 53.4 50.6 50.4 46.8 51.0
Employment 49.6 50.7 51.8 51.4 48.5 48.0
New Orders 56.2 52.1 52.7 52.5 50.7 52.8
Finished Stocks 50.0 54.4 53.2 52.3 56.8 57.6
Deliveries 52.7 54.0 52.3 54.2 51.2 48.9

BNZ – BusinessNZ PMI Time Series

June 2018 – June 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Jul 2019
49.4

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