BNZ – BusinessNZ
Performance of
Manufacturing
Index

Manufacturing still flat in October, though small green shoots – PMI

11 Nov, 2010

October saw little change from September regarding activity in manufacturing, as the sector remains fairly static and still not quite able to get into expansionary territory, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for September stood at 49.7, a slight improvement on September’s result (49.5) but not much of a movement (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This is the third consecutive month sitting on 49, though on the positive side there are now three of the five indices, employment, new orders and deliveries sitting at just over 50.

BusinessNZ’s executive director for manufacturing Catherine Beard said that while the flat patch has gone on now for three months, having new orders and employment slightly on the expansion side of the ledger is a positive indicator that New Zealand manufacturing might be able to turn the corner soon.

“Those making positive comments in the survey seem to be those that are focused on exporting to the Australian market or have some seasonal things going their way.”

“In terms of how we are tracking against other manufacturing countries, Australia is also flat in October on 49.4, with the high Australian dollar and weakness in new orders creating challenges.  The JP Morgan Global Manufacturing PMI is now showing expansion (53.7) with the US and China hitting five and nine month highs respectively.”

BNZ economist Doug Steel said there were good bits and bad bits to October’s results, which broadly net each other to continue the plateau of recent months.

“The bad bits seem centred on the here and now, most noticeably in production. The housing market also remains soft and the effects of the earthquake have kicked in. Canterbury/Westland was the only region where the PMI came in below 50.”

“The good bits were concentrated on new orders and employment. There were also pockets of positivity regarding exports, but external demand conditions are still far from uniform. Respondents’ remarks cover the full spectrum of perspectives. Of those that mentioned particular markets, there was a general positive Asia/Australia and negative US/Europe theme, which is in line with the present lopped-sidedness of global economic growth.”

Of the five seasonally adjusted main diffusion indices, the two that remain in contraction are production (46.0) and finished stocks (49.9), though it is hopeful that the slight expansion in new orders, employment and deliveries are signs manufacturing is turning the corner.

Unadjusted results by region showed some change in activity levels for most regions.  All the regions were in expansion apart from Canterbury/Westland (49.5) down 3.3 points from last month. Of those in expansion, the Central region improved the most (7.1 points) to land on 54.8. Otago/Southland was a close second improving 6.3 points to land on 53.7. Northern region went ahead 2.6 points to reach 56.3.

Click here to view the October PMI
Click here to view PMI time series data

For media comment:
Catherine Beard 04 496 6560 or 027 463 3212
Doug Steel 04 474 6923

BNZ - BusinessNZ PMI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI

Manufacturing Snapshot

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.

BNZ – BusinessNZ PMI Time Series

January 1966 – January 1970

International Results

J.P. Morgan Global Manufacturing PMITM

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

Back in the red

New Zealand’s manufacturing sector fell back into contraction during May, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for May was 47.5 (a PMI reading above 50.0 indicates that manufacturing is...

Uptick in expansion

New Zealand’s manufacturing sector showed an uptick in expansion during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for April was 53.9 (a PMI reading above 50.0 indicates that manufacturing is...

Holding its own

New Zealand’s manufacturing sector continued to show expansion for a third consecutive month, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for March was 53.2 (a PMI reading above 50.0 indicates that...

Lift off

New Zealand’s manufacturing sector displayed its highest value for expansion since August 2022, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for February was 53.9 (a PMI reading above 50.0 indicates...

Expansion

New Zealand’s manufacturing sector displayed expansion for the first time in 23 months, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for January was 51.4 (a PMI reading above 50.0 indicates that...

Our Contributors

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