BNZ – BusinessNZ
Performance of
Manufacturing
Index

Levels of difference – PMI

11 Sep, 2020
50.7
August
-8.3

Monthly Change

expanding
slower rate

Expansion in New Zealand’s manufacturing sector dropped during August, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for August was 50.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was down 8.3 points from July, and the lowest result since May.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the Auckland lockdown obviously had a strong influence on results.

“After two months of playing catch-up, the level 3 lockdown placed on New Zealand’s largest population and economic region meant the sector would experience another hit.  While results in other parts of the country led to the national result keeping its head above water, the latest results show how fragile and short the recovery can be.”     

“While the key indices of new orders (54.0) and production (51.1) still remained positive, employment (49.0) remained in contraction for the sixth consecutive month.” 

BNZ Senior Economist, Doug Steel said that “an outcome above the 50 breakeven mark – indicating a modicum of growth occurred in the month – is arguably a commendable result given more than a third of the country moved into alert level 3 for more than half of the month.”

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

Restart Restricted

After the euphoria and freedoms of alert level 1 in July came the resurgence of COVID and tighter restrictions during August, particularly in Auckland. The impact is clear in the Performance of Manufacturing Index.
Read more

Unsettled Trading Conditions

Underneath the ‘ok given the circumstances’ headline figure, there was a wide range of outcomes. One sign of disparity came from respondents being nearly evenly split between noting positive or negative factors on their activity.
Read more

Demand Variable But Improving

New orders remain the strongest sub component of the PMI.  Yes, it fell from an exceptionally strong 67.5 in July to 54.0 in August. But this is the third consecutive month above 50 suggesting underlying demand is improving, if variable.
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 Aug
2019
Apr
2020
May
2020
Jun
2020
Jul
2020
Aug
2020
BNZ – BusinessNZ PMI 48.6 26.0 40.3 56.3 59.0 50.7
Production 48.8 18.9 39.3 58.6 61.8 51.1
Employment 50.1 41.0 39.3 48.3 46.9 49.0
New Orders 46.8 16.3 40.7 58.1 67.5 54.0
Finished Stocks 52.4 37.8 41.1 57.2 51.7 50.0
Deliveries 48.3 25.0 42.1 58.0 58.5 47.2

BNZ – BusinessNZ PMI Time Series

August 2018 – August 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Sep 2020
51.8

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