BNZ – BusinessNZ
Performance of
Manufacturing
Index

On the margins – PMI

12 Aug, 2022
52.7
July
+2.7

Monthly Change

expanding
previously steady

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 expanding; below 50.0 that it is declining).  This was 2.7 points higher than June, but still below the long-term average of 53.1 for the survey.

BusinessNZ’s Director, Advocacy Catherine Beard said that while a return to expansion in the sector was a positive step forward, the numbers behind the headline figure continue to show a sector stlll struggling to get traction.  

“The key sub index values of Production (49.0) and New Orders (50.5) both improved from June, although the former was still in contraction.  While Employment (52.6) rose 1.3 points from June, both Finished Stocks (49.4) and Deliveries (49.4) were in contraction.”

Also, manufacturers have continued to have a more negative mindset, with the July result showing 62.1% providing negative comments.  Although this was down from 68.5% recorded in June, staff retention/shortages and supply chain issues continue to show a strong presence.

BNZ Senior Economist, Doug Steel stated that “despite the increase in July, the PMI remains shy of its long-term average of 53.1 as it has done so for four consecutive months now. Over that period, the PMI has also shown something of a saw-tooth pattern providing no clear sign of acceleration or deceleration.”

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

The Performance of Manufacturing Index (PMI) rose to 52.7 in July from June’s smack-on-breakeven reading of 50.0. At first glance this is a decent lift and a step in the right direction. But it would be a stretch to call it good.

Read more

Big Bad Noise

The details don’t offer much clarity either. In a word: noisy. That is perhaps understandable judging by respondent comments, where there still seems to be a stop-start tone to business amid reports of disruption from labour shortages, illness and absenteeism, freight and logistics issues including for raw material supplies, along with intermittent new orders.

Read more

More Questions Than Answers

The major component numbers seem to raise more questions than answers. For example, the PMI production index remains contractionary even though it edged up to 49.0 in July from 48.0. It is well below average and sub-50 readings are clearly not good for growth. But is lower output being driven more by supply or demand issues?

Read more

Size: A Clearer Signal

One theme that has been quite regular in the PMI through the pandemic is that smaller firms have tended to underperform relative to larger firms.

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 Jul 2021 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022
BNZ – BusinessNZ PMI 61.8 53.4 51.0 52.8 50.0 52.7
Production 63.6 50.5 49.5 52.8 48.0 49.0
Employment 57.4 52.2 49.8 52.8 51.3 52.6
New Orders 61.8 58.9 54.9 52.3 47.9 50.5
Finished Stocks 56.6 53.2 53.7 52.6 49.9 49.4
Deliveries 53.4 51.5 49.7 55.1 51.6 49.4

BNZ – BusinessNZ PMI Time Series

July 2018 – July 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Aug 2022
51.1
Stephen Summers

Stephen Summers

Economist, BusinessNZ

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...

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).

Slowly does it – PMI

New Zealand’s manufacturing sector saw another, albeit slight, improvement in its level of expansion, 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