BNZ – BusinessNZ
Performance of
Manufacturing
Index

Soldering on – PMI

17 Jun, 2022
52.9
May
+1.7

Monthly Change

expanding
faster rate

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).

The seasonally adjusted PMI for May was 52.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was 1.7 points higher than April, it was still below the long-term average of 53.1 for the survey.

BusinessNZ’s Director, Advocacy Catherine Beard said that the pick-up in activity for May continued the recent trend of results where activity remains within a relatively narrow band of expansion.     

“While both Production (52.8) and Delivery of Raw Materials (55.4) both managed to return to expansion for May, the other key sub-index of New Orders (53.0) recorded its lowest level of activity since the August lockdown in 2021. Overall, any sustained move towards historical levels of expansion requires a healthy level of new orders, which has averaged 55.0 since the survey began.”

Manufacturers continue to have a more negative mindset during May, with the proportion of negative comments at 72.7%, compared with 70.3 in April and 64.2% in March.  While COVID and related issues remain a key influence, skill/labour shortages are also regularly mentioned.

BNZ Senior Economist, Craig Ebert stated that “The net result of the sub-index values was the inference that excess demand alleviated during May. New orders are perhaps the cleanest representation of demand, while deliveries speak more to the supply side. To the extent excess demand is abating, so too will be core inflation pressure”.

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) was a little more expansive in May, and not quite as varied in its details.
Read more

Diminishing excess demand?

The net result of the above-mentioned was the inference that excess demand alleviated during May. New orders are perhaps the cleanest representation of demand, while deliveries speak more to the supply side.
Read more

Less varied

In terms of the lessened variation in the PMI we can note that in April the spread across industries traversed 29.0 to 95.0 whereas May’s range was 33.8 to 67.5, with food & beverage and metal-based manufacturers among the strongest.
Read more

A bounce

While the NZ PMI has kept its head above water since the Delta shock of August 2021, manufacturing activity as measured in the GDP accounts has been through some big ups and downs.
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 May
2021
Jan
2022
Feb
2022
Mar
2022
Apr
2022
May
2022
BNZ – BusinessNZ PMI 58.3 52.2 53.4 53.6 51.2 52.9
Production 63.5 50.8 51.5 50.4 49.4 52.8
Employment 52.0 49.6 51.8 52.2 49.8 53.0
New Orders 64.5 53.8 58.1 58.9 55.2 53.0
Finished Stocks 52.6 53.2 50.0 53.3 54.0 53.1
Deliveries 52.7 53.8 52.8 51.4 49.7 55.4

BNZ – BusinessNZ PMI Time Series

May 2018 – May 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Jun 2022
52.4

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