BNZ – BusinessNZ
Performance of
Manufacturing
Index

Hanging on – PMI

12 Oct, 2018
51.7
September
-0.3

Monthly Change

expanding
slower rate

New Zealand’s manufacturing sector remained within a tight and low level of expansion for September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for September was 51.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.3 points lower than August, and within a tight band of only 1.5 points for the last four months.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the September results confirmed that the sector is currently stuck in low expansion mode.

“While it was good to see employment (50.5) returning to some level of expansion, in contrast production (49.6) returned to contraction.  Also, new orders (52.4) displayed weaker expansion for September, which may affect production figures in the months ahead.     

The proportion of positive comments (53.4%) remains weak, with those who outlined negative influences typically focussed on further falls in customer demand (both onshore and offshore), as well as comments centred on a general slowdown”. 

BNZ Senior Economist, Craig Ebert said that “while New Zealand’s manufacturing sector remains stuck in a low gear, we should remain cautious about how much expansion we can reasonably expect of it given the industry remains extremely stretched for resources”.

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 manufacturing sector remains stuck in a low gear. That’s the message from the latest Performance of Manufacturing Index (PMI).
Read more

QSBO

That manufacturers were finding it tough going was also the message from the latest NZIER Quarterly Survey of Business Opinion (QSBO). In this, manufacturers expressed the weakest confidence (in the general economic economic) of all the sectors canvassed.
Read more

Employment

The QSBO also gelled with recent detail in the PMI, in suggesting a loss of moment in hiring – albeit not a complete loss.
Read more

Capacity

But how weak is NZ manufacturing, really? We pose this question noting that, for all of its slow indicators, the industry remains extremely stretched for resources.
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 Sep
2017
May
2018
Jun
2018
Jul
2018
Aug
2018
Sep
2018
BNZ – BusinessNZ PMI 57.4 54.4 52.7 51.2 52.0 51.7
Production 59.0 53.2 51.5 49.1 52.5 49.6
Employment 50.7 49.6 49.1 51.4 49.0 50.5
New Orders 60.0 56.5 56.5 52.3 53.1 52.4
Finished Stocks 54.8 51.7 50.3 53.5 51.4 52.7
Deliveries 57.9 58.1 51.5 54.0 54.1 52.5

BNZ – BusinessNZ PMI Time Series

September 2020 – September 2024

International Results

J.P. Morgan Global Manufacturing PMITM

01 Oct 2018
52.2

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PMI Releases

Lack of orders

Activity in New Zealand’s manufacturing sector experienced a drop in May and ongoing contraction of the sector, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for May was 47.2 (a PMI reading above 50.0...

To and Fro

Activity in New Zealand’s manufacturing sector experienced a pick up during April, although still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for April was 48.9 (a PMI reading...

One step back

Activity in New Zealand’s manufacturing sector experienced stronger contraction during March, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for March was 47.1 (a PMI reading above 50.0 indicates that...

On the improve

Activity in New Zealand’s manufacturing sector continued to show improvement in February, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for February was 49.3 (a PMI...

Stuck in low gear

Activity in New Zealand’s manufacturing sector improved in January, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for January was 47.3 (a PMI reading above 50.0...

Our Contributors

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