BNZ – BusinessNZ
Performance of
Manufacturing
Index

Steady state – PMI

15 Sep, 2016
55.1
August
-0.4

Monthly Change

expanding
slower rate

New Zealand’s manufacturing sector remained in a steady state of expansion, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for August was 55.1 (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 July, but still represented healthy growth for manufacturing in New Zealand. The sector remains solidly in expansion in almost all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the five sub-indexes showed varied movements in activity since June.

“Employment (47.4) experienced the biggest hit after four consecutive increases in expansion. Production (55.7) slipped slightly, although new orders (59.1) remained strong”.  

“The slight dip in overall expansion was mirrored by the proportion of positive comments decreasing to 58.4% for August, compared with 62.8% in June to 63.8% in July. A number of negative comments were centered on this time of year being typically quiet, while positive comments tended to focus on ongoing orders, as well as preparation for the summer season”.

BNZ Senior Economist, Craig Ebert, said “although the seasonally adjusted August result eased slightly to 55.1, this was a trivial move statistically, leaving the PMI happily north of its long-term average of 53.1”.

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) was still looking good in August. Sure, it eased to a seasonally adjusted level of 55.1, compared to 55.5 in July. However, this was a trivial move, statistically, leaving the PMI happily north of its long-term average of 53.1.

Read more  

Output

A still-strong new-orders index (59.1) was important in keeping the August PMI looking good. However, its production index lost a bit more momentum, coming in at a seasonally adjusted 55.7, from 57.8 in July and a peak of 60.9 back in May.

Read more  

Employment

Having been relatively strong over recent months, the PMI employment index sagged quite a bit in August. Indeed, it fell into contraction territory, with a seasonally adjusted reading of 47.7, from 54.4 in July.

Read more  

Resources

A quiet achiever in the latest PMI survey remains Petroleum, Coal, Chemical and Associated Product. Indeed, it has been robust for a good 12 months now, with an index reading averaging 58.9.

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 Aug
2015
Apr
2016
May
2016
Jun
2016
July
2016
Aug
2016
BNZ – BusinessNZ PMI 55.3 56.6 57.0 57.5 55.5 55.1
Production 55.8 58.8 60.9 60.4 57.8 55.7
Employment 53.4 50.3 53.2 53.6 54.4 47.4
New Orders 57.0 59.5 59.9 61.3 58.1 59.1
Finished Stocks 52.2 52.8 49.4 50.7 49.2 50.7
Deliveries 53.2 56.5 55.2 56.1 55.1 55.9

BNZ – BusinessNZ PMI Time Series

August 2018 – August 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Sep 2016
50.8

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