BNZ – BusinessNZ
Performance of
Manufacturing
Index

Now hiring – PMI

12 Aug, 2016
55.8
July
-1.8

Monthly Change

expanding
slower rate

New Zealand’s manufacturing sector continued to show stable growth in activity for July, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
 
The seasonally adjusted PMI for July was 55.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  Although this was 1.8 points lower than June, it still represented healthy growth.  The sector remains solidly in expansion in almost all months since October 2012.
 
BusinessNZ’s executive director for manufacturing Catherine Beard said that while both production and new orders came back slightly from strong activity levels, employment has been a slow and steady burner in terms of activity.
 
“Expansion for employment reached 54.6 in July, which was the fifth consecutive monthly increase in activity.  It was also the highest level of activity for this sub-index since October 2014”.  

“Despite the slight dip in overall expansion, the proportion of positive comments increased slightly from 62.8% in June to 63.8% in July.  A number of comments were centered on business as usual, with continued growth in customer orders.”

BNZ Senior Economist, Craig Ebert, said “The only weak looking constituent of July’s PMI was around the stocks of finished products. Yet it’s hard to see this as a genuine negative. Not with new orders, as a demand indicator, still relatively strong at a seasonally adjusted 58.1”.

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

New Zealand’s Performance of Manufacturing Index (PMI) maintained decent momentum in July. Its seasonally adjusted result was 55.8, compared to the 57.6 level it edged up to in June.
Read more  

Inventory

The only weak looking constituent of July’s PMI was around the stocks of finished products. Indeed, the index for this slipped into slight contraction territory, with a reading of 49.0.
Read more  

Employment

As other components of the NZ PMI might arguably have slowed a bit, its employment index has steadily picked up over the last 5 months. It hit a relatively strong 54.6 in July, from 53.7 in June.
Read more  

Concrete Production

As we’ve frequently pointed out, the manufacturing sector is being greatly supported by a hefty construction cycle.
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
2015
Mar
2016
Apr
2016
May
2016
Jun
2016
Jul
2016
BNZ – BusinessNZ PMI 54.3 54.8 56.6 57.1 57.6 55.8
Production 57.2 55.4 58.7 61.0 60.6 58.4
Employment 50.9 49.0 50.1 53.2 53.7 54.6
New Orders 55.6 58.0 59.5 59.9 61.3 58.1
Finished Stocks 52.3 54.7 52.8 49.4 50.6 49.0
Deliveries 54.5 51.8 56.6 55.2 56.1 55.1

BNZ – BusinessNZ PMI Time Series

July 2018 – July 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Aug 2016
51.0

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