BNZ – BusinessNZ
Performance of
Manufacturing
Index

State of Flux – PMI

13 Nov, 2020
51.7
October
-2.3

Monthly Change

expanding
slower rate

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

The seasonally adjusted PMI for October was 51.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was down 2.3 points from September.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the sector remains in a state of flux, although still managing to keep in positive territory.

“Despite a relatively strong showing with the key indices of production and new orders in September, October saw both slide to lower levels of expansion.  On a brighter note, employment (52.6) reached its highest level since April 2018”.     

BNZ Senior Economist, Craig Ebert said that “October’s PMI serves as a gentle reminder of not getting too carried away with the sense of recovery, even if the worst of COVID’s impacts can be assumed to be behind us”.

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

Not So Fast

October’s Performance of Manufacturing Index (PMI)served as a gentle reminder. That is, of not getting too carried away with the sense of recovery, even if the worst of COVID’s impacts can be assumed to be behind us.
Read more

QSBO Also Highlights Caution

Then again, there was a bigger realisation of disappointment in October’s NZIER Quarterly Survey of Business Opinion (QSBO), amongst manufacturers. Their reports of output over the last 3 months, for example, remained negative, at a net -15.
Read more

Costs

Even if activity is assured of expanding well, it is no guarantee of improved profit – especially when cost pressures are emerging, as they very much appear to be.
Read more

Capacity

The advent of rising cost pressure might seem odd, when there is supposedly gaping amounts of spare capacity in the economy. The first point we’d make about this, is that there is probably less spare capacity than generally thought.
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 Oct
2019
Jun
2020
Jul
2020
Aug
2020
Sep
2020
Oct
2020
BNZ – BusinessNZ PMI 51.8 56.4 59.0 51.0 54.0 51.7
Production 51.3 58.8 61.8 51.8 56.7 51.1
Employment 49.5 48.3 47.2 49.2 51.7 52.6
New Orders 53.4 58.2 67.5 54.3 58.1 52.4
Finished Stocks 48.9 56.9 51.7 50.0 48.9 49.1
Deliveries 52.0 57.4 58.2 47.6 49.8 49.5

BNZ – BusinessNZ PMI Time Series

October 2018 – October 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 Nov 2020
53.0

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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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...

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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