BNZ – BusinessNZ
Performance of
Manufacturing
Index

Stuck in low gear – PMI

14 Sep, 2018
52.0
August
+0.8

Monthly Change

expanding
faster rate

New Zealand’s manufacturing expansion remained in low gear for the third consecutive month, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for August was 52.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was 0.8 points higher than July, it remains below the long run average expansion level of 53.4.

BusinessNZ’s executive director for manufacturing Catherine Beard said that in a similar vein to July, the August results were a mixed bag.

“While production (52.6) returned to expansion and new orders (53.2) also improved from July, employment (48.1) fell back into contraction to its lowest level since August 2016.  Looking at the remaining sub-indices, deliveries (54.3) remained largely unchanged, while finished stocks (51.4) decreased 2.1 points.   

The proportion of positive comments (56.3%) lifted in August, with construction demand noted by a number of respondents.  Those who outlined negative influences typically focussed on a general slowing of market conditions and customer demand”. 

BNZ Senior Economist, Craig Ebert said that “although the PMI improved in August, this was hardly different to the average of the previous two months, leaving the PMI running below normal in its growth signal”.

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

It looked sweet through much of 2017, but New Zealand’s manufacturing industry has definitely run into some treacle this year. This is the message from the Performance of Manufacturing Index (PMI) anyway.
Read more

Employment

Neither can we draw a lot of confidence from the latest PMI in that its employment index is exhibiting signs of stalling. Of course, July’s bounce in this regard, to 51.2, offered some hope that things were improving.
Read more

Sales

We should also point out, for perspective, industrial activity is not as bad as Monday’s June quarter figures inferred. These registered a 1.2% slump in the volume of manufacturing sales.
Read more

Food

Issues of timing have also affected New Zealand’s food processing of late. Granted, this wasn’t obvious in the Q2 manufacturing statistics, which showed just a 1.6% increase in meat and dairy product manufacturing volumes, compared to Q1 (s.a.).
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
2017
Apr
2018
May
2018
Jun
2018
Jul
2018
Aug
2018
BNZ – BusinessNZ PMI 57.8 59.1 54.3 52.7 51.2 52.0
Production 60.0 60.5 53.2 51.5 49.2 52.6
Employment 56.7 54.3 49.7 49.1 51.2 48.1
New Orders 58.9 60.1 56.4 56.5 52.4 53.2
Finished Stocks 52.8 55.1 51.7 50.3 53.5 51.4
Deliveries 56.0 60.7 58.1 51.3 54.2 54.3

BNZ – BusinessNZ PMI Time Series

August 2018 – August 2022

International Results

J.P. Morgan Global Manufacturing PMITM

04 Sep 2018
52.5

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