BNZ – BusinessNZ
Performance of
Manufacturing
Index

Staff wanted – PMI

13 Nov, 2014

Employment activity reached its highest level as the manufacturing sector continued to show stronger expansion during October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 59.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.8 points higher than September, and the highest result recorded so far for 2014.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the PMI has continued to build momentum over the last five months.

“While the month of May represented the lowest value recorded for the survey so far in 2014, a run of steady and ongoing increases in activity since then has led to the survey now slightly below the 60 point mark for expansion.

“While all diffusion indices are in expansion, the fact that employment is at its highest ever level since the survey began in 2002, provides another boost in the arm for the sector. In addition, the proportion of positive comments from manufacturers (68.7%) was well up on results from previous months. This all bodes well for a healthy end to 2014.”

BNZ Senior Economist, Doug Steel, says “New Zealand’s labour market continues to strengthen with annual employment growth of 3.2% and the unemployment rate falling in the year to September. Today’s PMI results suggest more improvement is likely in the final quarter of 2014.”

All five seasonally adjusted main diffusion indices were again in expansion during October.  Production (62.5) led the way, with its highest result since July 2013. New orders (61.8) rose 1.7 points to remain above the 60-point mark, while employment (57.5) recorded its highest ever result since the survey began in 2002. Deliveries (56.6) eased from its level of activity in the previous month, while finished stocks (51.5) also experienced a lower level of activity from September.

All four regions were again in expansion during October. In the North Island, the Northern region (60.2) climbed back over the 60-point mark to show strong activity for the month. The Central region (56.6) continued to build on its momentum with activity at its highest since March 2014. In the South Island, the Canterbury/Westland region (61.6) increased 5.7 points, while the Otago-Southland region (70.6) continued its momentum from the previous month.

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

For media comment: 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

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