BNZ – BusinessNZ
Performance of
Manufacturing
Index

Downward trend – PMI

10 Aug, 2018
51.2
July
-1.5

Monthly Change

expanding
slower rate

New Zealand’s manufacturing expansion continued its downward trend, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for July was 51.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.5 points lower than June, and the third consecutive month where expansion has weakened.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the July result produced a few red flags in terms of where the manufacturing sector currently sits.

“Production (49.0) experienced its lowest level of contraction since May 2015, while the unadjusted PMI was in slight contraction for the first time since January 2017.  While employment (51.2) rose above the no change mark after two months of decline, new orders (52.6) displayed only minor to moderate expansion. 

In addition, the proportion of positive comments (48.8%) was overtaken by the proportion of negative comments (51.3%) during July.  Those who provided negative comments noted some seasonal factors at play, along with general customer demand slowing.   

BNZ Senior Economist, Doug Steel said that “at this level, the PMI is hinting at more than just a slowdown in the manufacturing sector but outright slow growth”.

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

Below average

New Zealand’s Performance of Manufacturing Index (PMI) has slipped further in July, marking the third consecutive slowing from its big spike in April. More disconcertingly, July’s 51.2, following June’s 52.7, is the second consecutive reading below the series’ long term average of 53.4.
Read more

Growth forecasts on notice

Being a survey of actual activity – not confidence or expectations – the PMI results through June and July are not a good look for overall economic growth.
Read more

Employment better

Amid the generally sombre July PMI details, employment was a rare brighter spot. Not that it was particularly strong, but at 51.2 it was back above the 50 mark following two months below it.
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 Jul
2017
Mar
2018
Apr
2018
May
2018
Jun
2018
Jul
2018
BNZ – BusinessNZ PMI 55.8 53.1 59.1 54.3 52.7 51.2
Production 57.3 52.4 60.5 53.2 51.4 49.0
Employment 55.0 53.1 54.2 49.6 49.2 51.2
New Orders 56.8 54.8 60.1 56.4 56.5 52.6
Finished Stocks 55.5 54.3 55.1 51.8 50.3 53.6
Deliveries 56.9 54.7 60.8 58.2 51.2 54.5

BNZ – BusinessNZ PMI Time Series

July 2018 – July 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Aug 2018
52.7

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