BNZ – BusinessNZ
Performance of
Manufacturing
Index

Producing the goods – PMI

15 Sep, 2017
57.9
August
+2.4

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector experienced increased expansion levels during August, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).
 
The seasonally adjusted PMI for August was 57.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.4 points higher than July, and close to expansion levels seen in May.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the pick-up in expansion levels was good to see after consecutive months of lower expansion.
 
“Expansion was was higher for three of the five sub-indices, with production (60.3) at its highest level since September 2016.  Employment (56.7) also went from strength to strength, with its highest result since September 2014”.    
 
“With expansion improving during August, the proportion of positive comments increased to 65%, which was well up on the 56.1% recorded in July, although still lower than 68.2% in June.  In terms of specific comments, there were a number who outlined increased orders from Australia, while various negative comments mentioned uncertainty around the upcoming election”.

BNZ Senior Economist, Craig Ebert, said that “while the election polls are equivocal, the PMI is nothing of the sort.  It picked up to a perky 57.9 in August, which puts it even further above its long-term average of 53.3”.

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

While the election polls are equivocal, the Performance of Manufacturing Index (PMI) is nothing of the sort. It picked up to a perky 57.9 in August, after a reading of 55.5 in July.
Read more  

Employment

The employment index of the PMI, not to be overlooked, rocked on at 56.7 in August, from 56.5. For a series that has averaged 50.6 since inception (August 2002) these are fair booming results.
Read more  

Manufacturing Sales

The Economic Survey of Manufacturing showed a 1.0% increase in sales volumes in the June quarter of 2017, seasonally adjusted. When we number-crunch this along with the accompanying inventory data, we get the impression that production in the sector expanded about 1.0% as well.
Read more  

Global

While the NZ PMI remains a (positive) standout on the international stage, manufacturing activity around the world, to be sure, is picking up.
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 Aug
2016
Apr
2017
May
2017
Jun
2017
Jul
2017
Aug
2017
BNZ – BusinessNZ PMI 54.6 56.7 58.1 56.0 55.5 57.9
Production 55.7 56.9 59.4 57.9 56.2 60.3
Employment 46.6 53.3 55.4 49.0 56.5 56.7
New Orders 58.0 61.6 60.3 58.1 55.5 58.4
Finished Stocks 52.3 53.9 55.0 53.9 55.9 52.8
Deliveries 56.4 54.9 58.0 56.9 56.4 56.0

BNZ – BusinessNZ PMI Time Series

August 2018 – August 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Sep 2017
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