BNZ – BusinessNZ
Performance of
Manufacturing
Index

Heavy labour – PMI

13 Aug, 2021
62.6
July
+1.7

Monthly Change

expanding
faster rate

Expansion in New Zealand’s manufacturing sector lifted again in July to record its second highest result, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for July was 62.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.7 points higher than June, and only below the 63.6 recorded in March over the history of the survey.

BusinessNZ’s executive director for manufacturing Catherine Beard said that “this was the third time in five months that the PMI posted a result over 60.0.  While the key sub-index values of Production (66.0) and New Orders (65.0) both showed further expansion from June, Employment (58.3) recorded its highest ever result over the history of the survey.”

“Despite the second highest result for overall activity, the proportion of negative comments (51.4%) still remained higher than positive ones (48.6%).  Increased orders – both domestically and overseas – was the most common factor for those who outlined positive comments.  In contrast, the increasingly tight labour market was mentioned by many manufacturers who provided negative comments.  Supply chain issues and raw material costs were also outlined as problematic.”

BNZ Senior Economist, Craig Ebert stated that “while New Zealand’s PMI is doing exceptionally well, we are also conscious of the headwinds happening for global manufacturing.  This is on account of the resurgence of COVID19 in its delta strain.”

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

PMI

The latest Performance of Manufacturing Index (PMI) portrayed an industry champing at the bit. Not content with its very high reading of 60.9 for June it pressed up to 62.6 in July. Only twice before has it been speedier – once in March 2021, when it hit a record high of 63.6, and once back in June 2004 (with 62.8).
Read more

Jobs, Jobs, Jobs

But if there’s a hottest topic of the economy at present it is arguably the labour market. Figures released by Stats NZ last week certainly highlighted a lot of heat, with a drop in the nation’s unemployment rate to 4.0% in Q2, from 4.6% in Q1.  With this, wage inflation was clearly picking up.
Read more

Industries on a bounce

Driving the increase in the PMI in July were a few industries that were dragging the chain in June; in a relative rather than absolute sense, that is.
Read more

It’s all Greek (letters) to us

While New Zealand’s PMI is doing exceptionally well, we are also conscious of the headwinds happening for global manufacturing. This is on account of the resurgence of COVID19 in its delta strain.
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 Jul
2020
Mar
2021
Apr
2021
May
2021
Jun
2021
Jul
2021
BNZ – BusinessNZ PMI 59.1 63.6 58.3 58.7 60.9 62.6
Production 61.3 66.5 63.9 64.8 64.4 66.0
Employment 46.7 53.5 52.8 52.3 56.7 58.3
New Orders 67.5 72.2 60.9 63.6 63.6 65.0
Finished Stocks 51.5 55.2 55.0 53.7 57.4 56.9
Deliveries 57.6 63.0 52.8 53.5 55.2 57.9

BNZ – BusinessNZ PMI Time Series

July 2017 – July 2021

International Results

J.P. Morgan Global Manufacturing PMITM

02 Aug 2021
55.4

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

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New Zealand’s manufacturing sector slipped further into contraction during September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for September was 45.3 (a PMI reading above 50.0 indicates that...

Our Contributors

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