BNZ – BusinessNZ
Performance of
Manufacturing
Index

Steady Pace – PMI

14 Jul, 2017
56.2
June
-2.0

Monthly Change

expanding
slower rate

New Zealand’s manufacturing sector saw expansion continue to hover around expansion levels experienced over the last three months, according to the BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 56.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2.0 points lower than May, and similar to expansion levels seen in April. Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the last four months show the sector hovering around an expansion range between 56-58, which is still positive and healthy.

“Encouragingly new orders (58.7) continues to push forward with healthy expansion, followed by production (58.0). However, one noticeable dip was for employment (49.5), which went into minor contraction for the first time since November 2016.

“While expansion eased during June, the proportion of positive comments stood at 68.2%, compared 69.4% in May and 64.7% in April”.

BNZ Senior Economist, Craig Ebert, said “that while it was always going to struggle to match its 58.2 level of May, at 56.2 in June the PMI was still nicely above average”.

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

New Zealand’s Performance of Manufacturing Index (PMI) has largely maintained its solid momentum of recent months. While it was always going to struggle to match its 58.2 level of May, at 56.2 in June the PMI was still nicely above average.
Read more  

Activity

Broadly speaking, the latest PMI was expansive. Certainly, its output index was robust, at a seasonally adjusted 58.0, from 59.5 in May.
Read more  

Employment

If there was a weak spot in June’s PMI it was arguably in its employment index. Indeed, it slumped to 49.5, so below the breakeven mark of 50. However, it seems too early to judge this as a genuinely negative read.
Read more  

Capacity

In any case, NZ manufacturers would appear to be having problems finding staff in the first place. We got this impression from the QSBO variables on difficulty in finding labour.
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 Jun
2016
Feb
2017
Mar
2017
Apr
2017
May
2017
Jun
2017
BNZ – BusinessNZ PMI 57.8 55.7 58.1 56.7 58.2 56.2
Production 60.5 57.8 60.1 56.9 59.5 58.0
Employment 53.6 51.5 53.5 53.0 55.0 49.5
New Orders 61.4 59.0 63.0 61.7 60.6 58.7
Finished Stocks 51.3 55.7 53.0 54.0 54.6 54.5
Deliveries 56.3 54.3 54.4 54.9 58.2 57.2

BNZ – BusinessNZ PMI Time Series

June 2019 – June 2023

International Results

J.P. Morgan Global Manufacturing PMITM

03 Jul 2017
52.6

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]

PMI Releases

Downward spiral

Activity in New Zealand’s manufacturing sector dropped further during October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for October was 42.5 (a PMI reading above 50.0 indicates that manufacturing is...

Entrenched contraction

New Zealand’s manufacturing sector slipped further into contraction during September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for September was 45.3 (a PMI reading above 50.0 indicates that...

Struggle street

New Zealand’s manufacturing sector continued to lose momentum in August, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for August was 46.1 (a PMI reading above 50.0 indicates that manufacturing is...

Slipping away

New Zealand’s manufacturing sector slipped further into contraction during July, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for July was 46.3 (a PMI reading above 50.0 indicates that manufacturing is...

Tough Times

New Zealand’s manufacturing sector showed further contraction in June, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for June was 47.5 (a PMI reading above 50.0 indicates that manufacturing is generally...

Our Contributors

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