BNZ – BusinessNZ
Performance of
Manufacturing
Index

Steady and Stable Path – PMI

17 Nov, 2017
57.2
October
-0.4

Monthly Change

expanding
slower rate

Activity in New Zealand’s manufacturing sector during October remained within a fairly tight band of expansion over recent months, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 57.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was again 0.4 points lower than the previous month, the figure still represented very healthy and consistent levels of expansion.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the fundamentals of the October result remained healthy.

“The two main sub index values of production (60.7) and new orders (60.1) indicated strong expansion for October.  Also, while the proportion of positive comments dipped in October (64.2%) compared with 69.5% in September, it was still similar to the 65% recorded in August.

BNZ Senior Economist, Craig Ebert, said that “October’s result was certainly encouraging, as was September’s – bearing in mind the PMI is about the nuts and bolts of activity rather than sentiment about where things might be heading”.

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

Was New Zealand’s manufacturing sector put off by the recent transition to a new government? Not by the look of October’s Performance of Manufacturing Index (PMI). In fact, it held to a solidly expansive level of 57.2, versus 57.6 in September.
Read more

Exchange Rate

By the same token, it might be too soon to assume that local manufacturing activity has been boosted by the recent fall in the exchange rate.
Read more

Employment

If there were some chinks in October’s PMI they were in the area of employment. We noted last month how the PMI jobs index fizzled out to 50.7 for September, having been running nicely about the 56.0 mark in July and August.
Read more

Food

The other thing we are keeping an eye on in respect to the local manufacturing sector is the performance of food processing. We say this with indications that the volume of dairy and meat processing declined in the September quarter, seasonally adjusted.
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
2016
Jun
2017
Jul
2017
Aug
2017
Sep
2017
Oct
2017
BNZ – BusinessNZ PMI 55.1 56.0 55.6 58.0 57.6 57.2
Production 58.1 57.7 56.7 60.5 59.7 60.7
Employment 53.4 48.9 56.0 56.6 50.8 51.0
New Orders 55.2 58.1 55.8 59.1 60.7 60.1
Finished Stocks 52.5 53.9 55.9 52.9 55.4 55.0
Deliveries 55.4 57.0 56.5 56.1 58.3 57.9

BNZ – BusinessNZ PMI Time Series

October 2018 – October 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 Nov 2017
53.3

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.

PMI Releases

Building blocks – PMI

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...

Mid year blues – PMI

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