BNZ – BusinessNZ
Performance of
Manufacturing
Index

New order momentum – PMI

16 May, 2013

Continued momentum for new orders in the manufacturing sector contributed to a lift in the sector’s expansion rate, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for April was 54.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). Since the start of the year, activity in the sector has been both healthy and consistent, averaging 54.8 over the four months. Compared with previous April results, the 2013 value was 7.4 points higher than 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that 2013 continues to head in the right direction for manufacturers.

“Results over the last four months provide a regular pattern of growth, which has been assisted by strong activity for new orders, both domestic and offshore.

“Another aspect that needs to be examined is the increasing disparity of activity between New Zealand and the Australian manufacturing sector. In comparison, the Australian PMI for April was 36.7, their lowest result since May 2009. In fact the 2013 year provides the two largest monthly differences in activity levels between the two countries since the New Zealand PMI began in 2002.

BNZ Senior Economist, Craig Ebert, said, “Perhaps the biggest positive in the latest PMI came from the fact new orders, way up at 59.4, met with dipping stocks (47.8). This strongly suggests production will not only keep ramping up, but needs to in order to avoid emptying the shelves”.

Despite the continued healthy national result, only three of the five seasonally adjusted main diffusion indices were in expansion for April. New orders (59.4) again led the way with its highest result since February 2012. This was followed by deliveries (55.7), which has now experienced seven consecutive months in expansion. Production (55.3) increased 2.3 points from March, while both employment (48.0) and finished stocks (47.8) were in decline.

Expansion was experienced in most parts of the country in April. Both the Canterbury (56.6) and Central (56.3) regions experienced similar levels of expansion for the current month. The Northern region (52.6) increased 1.9 points from March, while the Otago/Southland region (46.9) remained all but unchanged from March, signalling two consecutive months of decline in activity.

Click here to view the April PMI
Click here to view seasonally adjusted & unadjusted time series data

For media comment: Catherine Beard ph 027463 3212 or 04 496 6560 or Craig Ebert ph 04 474 6799

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.

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Our Contributors

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