BNZ – BusinessNZ
Performance of
Manufacturing
Index

Onwards and upwards – PMI

14 Aug, 2020
58.8
July
+2.6

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector showed further expansion in July, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for July was 58.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up 2.6 points from June, and now the highest result since April 2018.

BusinessNZ’s executive director for manufacturing Catherine Beard said that in a similar vein to the last month, the path towards recovery continues for many manufacturers through increased orders and production in full swing.

“This is obviously a welcome outcome given the halt in any activity for many over lockdown. However, we should be careful not to interpret this as a new dawn for the sector, rather a catch-up for many trying to get back to a new sense of normality.”

“While the key indices of new orders (67.4) and production (61.4) showed further expansion, employment (46.5) remained weak and in contraction for the fifth consecutive month.”

BNZ Senior Economist, Doug Steel said that “July’s PMI had firmly set up the idea that manufacturing GDP would bounce back strongly in Q3 after what was surely a very large decline in Q2. The latest virus outbreak calls that into question and adds to the reservations that we already had for growth in Q4.”

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

Recovering Pre-Outbreak

July was another month of recovery for the manufacturing sector. Indeed, it was a strong one judging by the Performance of Manufacturing Index (PMI). It lifted to 58.8, building on June’s already positive 56.2. These positive readings follow extreme weakness through April (26.0) and May (40.3).
Read more

Higher Orders, Flat Inventory

July’s PMI new orders reading of 67.4 was the strongest since June 2004 and the second strongest in the survey’s history. Yes, there is a fair degree of rebound still coming through in this indicator from previous lockdown-induced weakness so it likely overstates the underlying strength, but there is no denying that new orders picked up strongly in the month.
Read more

Lower Employment

It is notable that even before the latest virus outbreak, the July PMI indicates that manufacturers were reducing staff numbers.
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
2019
Mar
2020
Apr
2020
May
2020
Jun
2020
Jul
2020
BNZ – BusinessNZ PMI 48.2 37.8 26.0 40.3 56.2 58.8
Production 50.6 31.3 18.8 39.1 58.4 61.4
Employment 42.1 45.2 41.0 39.2 48.5 46.5
New Orders 49.0 37.2 16.7 40.6 58.2 67.4
Finished Stocks 52.0 44.8 37.7 41.1 57.1 51.6
Deliveries 48.8 39.2 25.3 41.9 57.6 58.2

BNZ – BusinessNZ PMI Time Series

July 2018 – July 2022

International Results

J.P. Morgan Global Manufacturing PMITM

03 Aug 2020
50.3

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