BNZ – BusinessNZ
Performance of
Manufacturing
Index

Slow grind – PMI

13 May, 2022
51.2
April
-2.5

Monthly Change

expanding
slower rate

New Zealand’s manufacturing sector experienced a lower level of expansion during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for April was 51.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.5 points lower than March, and the lowest monthly result since August 2021.

BusinessNZ’s Director, Advocacy Catherine Beard said that after steady expansionary results over recent months, the April result highlighted the fickle nature of what manufacturers are currently experiencing.     

“In terms of the main sub-indices, New Orders (56.0) continued its positive stance, although Production (49.1) fell back into contraction. Employment (49.8) also contracted after two months of expansion, while Deliveries experienced its first level of contraction since November 2021.”

Manufacturers were in a more negative mindset during April, with the proportion of negative comments increasing from 64.2% in March to 70.3% in April.  While COVID features strongly in discussion, skill/labour shortages and supply chain disruptions are also prevalent.

BNZ Senior Economist, Craig Ebert stated that “supply problems certainly featured extensively in respondents’ comments, including inferences that COVID, and related absenteeism, remains a big issue, even with recorded case numbers having peaked back in March. This provides valuable context to the negativity in the PMI’s jobs index.”

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

PMI

While the Performance of Manufacturing Index (PMI) remained expansive in April, it also had a tinge of struggle about it. For a start, its seasonally adjusted reading, of 51.2, was slower than the 53.7 in posted in March and, in the process, dipped below its long-term norm, of 53.1.
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Very mixed fortunes

While the Performance of Manufacturing Index (PMI) remained expansive in April, it also had a tinge of struggle about it. For a start, its seasonally adjusted reading, of 51.2, was slower than the 53.7 in posted in March and, in the process, dipped below its long-term norm, of 53.1.
Read more

Supply issues remain

Having said this, there was also the strong message that what’s holding manufacturing back, in general, is more about ongoing supply constraints, than a weakening in demand.
Read more

Global context

With so much dispiriting press about the world of late, one could be forgiven for thinking the global PMI must be stalling, even contracting. In fact, it printed at 52.2 for April – fractionally above its long-term average, of 51.8. To be sure, it has steadily lost momentum, after peaking at a relatively strong 56.0 in May last year.
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 Apr
2021
Dec
2021
Jan
2022
Feb
2022
Mar
2022
Apr
2022
BNZ – BusinessNZ PMI 58.5 53.8 52.2 53.4 53.7 51.2
Production 63.7 56.2 50.8 51.5 50.3 49.1
Employment 53.8 52.2 49.6 51.8 52.2 49.8
New Orders 62.8 57.3 53.7 58.3 59.7 56.0
Finished Stocks 55.2 53.1 52.6 50.3 53.8 54.7
Deliveries 54.2 51.4 53.7 52.7 51.2 49.5

BNZ – BusinessNZ PMI Time Series

April 2018 – April 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 May 2022
52.2

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

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Our Contributors

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