BNZ – BusinessNZ
Performance of
Manufacturing
Index

Stability continues – PMI

14 Aug, 2014

The manufacturing sector continues to show expansion at a moderate but consistent level, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for July was 53.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.4 points lower than June, although it continues the trend of the sector now being in expansion for 22 consecutive months.

BusinessNZ’s executive director for manufacturing Catherine Beard said that results over the last four months show that the PMI has reached a level of expansion that is consistent with moderate growth.

“Since the survey began in 2002, the long term average level of activity for the PMI has been 52.7, with results over the last four months sitting at or above that. While we have experienced 15 months of strong expansion prior to April, recent results show that the sector is still clearly in positive territory.

“In addition, comments from respondents still remain on the upbeat side, with the pick-up in new orders evident with a number of comments associated with increased orders/demand, both domestically and offshore.”

BNZ senior economist, Doug Steel said, “Recent surveys point to a manufacturing sector in good spirits. While manufacturers are not quite as confident as they were earlier in the year, optimism remains above average levels.”

All five seasonally adjusted main diffusion indices were in expansion during July. New orders (55.0) led the way for the first time since March, with an increase from 52.2 in June. In contrast, production (54.0) dipped 1.9 points from the previous month to its lowest point since March 2013. Employment (51.3) also dipped, dropping 1.4 points from June, while finished stocks (51.5) returned to positive territory. Deliveries (53.3) dropped 1.9 points after a strong pick up the previous month.

Two of the four regions were in expansion during July. In the North Island, the Northern region (57.5) rose 6.9 points to return to almost the exact level of expansion as May. In contrast, the Central region (46.6) fell into contraction for the first time since January. In the South Island, the Canterbury/Westland region (52.3) experienced a lower expansion rate, while the Otago-Southland region (45.0) slipped further into contraction, which it has now been in for three consecutive months.

Click here to view the July PMI
Click here to view the seasonally adjusted & unadjusted time series data

For media comment: Catherine Beard 0274 633 212 or Doug Steel (04) 474 6923

BNZ - BusinessNZ PMI

Time Series Data

View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI

Manufacturing Snapshot

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.

BNZ – BusinessNZ PMI Time Series

January 1966 – January 1970

International Results

J.P. Morgan Global Manufacturing PMITM

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.

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Our Contributors

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