BNZ – BusinessNZ
Performance of
Manufacturing
Index

Moderate May – PMI

15 Jun, 2018
54.5
May
-4.6

Monthly Change

expanding
slower rate

New Zealand’s level of manufacturing expansion in May came back down to more steady levels of expansion, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for May was 54.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 4.6 points lower than April, but still the third highest result over the last six months.

BusinessNZ’s executive director for manufacturing Catherine Beard said that while May softened in terms of expansion, the fundamentals behind the main result look solid for now.

“Despite the sub index of employment (49.8) dipping slightly into contraction, the remaining sub-indexes stayed in expansion.  In addition, the proportion of positive comments in May (55.1%) was the same as March (55.1%), and up on February (51.4%) and January (50.7%).  Those who provided positive comments typically noted steady demand and work flow, with some new markets being sought after”.   

BNZ Senior Economist, Craig Ebert said that “May’s PMI cemented the idea of a moderating rate of expansion in the manufacturing sector, compared to calendar 2017.  Then again, above average is above average, which is encouraging”.

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

Having roared to a high level in April (59.1), New Zealand’s Performance of Manufacturing Index (PMI) fell back to just above average in May, with 54.5. This harnessed it more in line with its average over the Jan-Mar quarter.
Read more

Sales

The notion of robustness was certainly parlayed in March quarter manufacturing sales. These proved strong, increasing a seasonally adjusted 1.4%, in volume terms (and this was even after their December quarter increase was revised up to 1.5%, from 1.0%).
Read more

Inventory

In support of ongoing expansion in manufacturing output, there are clear indications that inventory is under control in the industry. This means demand is more likely to be met with a production response, rather than just taken out of over-stocked shelves in the first instance.
Read more

Employment

While May’s PMI of 54.5 looked fine, it harboured an abrupt stalling in its employment index. This slumped to 49.8, from 54.5 in April. To be sure, this is a jumpy series at the best of times.
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 May
2017
Jan
2018
Feb
2018
Mar
2018
Apr
2018
May
2018
BNZ – BusinessNZ PMI 57.8 55.1 53.4 53.1 59.1 54.5
Production 58.9 53.7 54.0 52.4 60.4 53.7
Employment 55.5 52.7 54.6 53.2 54.5 49.8
New Orders 59.6 55.5 54.4 54.7 60.2 56.7
Finished Stocks 55.7 52.9 51.4 54.3 55.2 51.8
Deliveries 57.5 54.9 53.1 54.7 60.1 58.7

BNZ – BusinessNZ PMI Time Series

May 2018 – May 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Jun 2018
53.1

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