BNZ – BusinessNZ
Performance of
Manufacturing
Index

Tight at the top – PMI

16 Jul, 2021
60.7
June
+2.1

Monthly Change

expanding
faster rate

Expansion in New Zealand’s manufacturing sector picked up in June, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 60.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.1 points higher than May, and the second time it had crossed the 60-point mark in four months.

BusinessNZ’s executive director for manufacturing Catherine Beard said that “the two major sub-index values of Production (64.5) and New Orders (63.6) remain firmly in strong expansion mode.  Employment (56.5) also picked up to its highest value since August 2017, while Finished Stocks (57.3) also showed noticeable improvement.”

“The recent partial Wellington lockdown saw activity in that region decline, but was more than compensated for by the other regions recording strong expansion.”

“Despite the overall pick-up in activity, the proportion of negative comments (53.1%) remained higher than positive ones (46.8%).  Many of the positive comments outlined increased demand, but this is counterbalanced by significant labour shortages and logistics disruptions many manufacturers are now facing.”

BNZ Senior Economist, Doug Steel stated that “the overt strength in the PMI comes amid ongoing supply side challenges that the sector faces and clear weakness in the Central region during the month.”

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

Six Months Above Average

The manufacturing sector continues to stride forward.  Firmly in expansion mode all year, the Performance of Manufacturing Index (PMI) accelerated in June to 60.7 from May’s already strong 58.6.  That completes six months of the index being well in excess of its long-term average of 53.2.
Read more

Supply Issues Still Widespread

Finished stocks and deliveries of raw materials increased in June, to 57.3 and 55.0 respectively.  Both components pushed up above their respective historical averages.  At face value, this hints at some progress in these longstanding supply side areas of concern for business.
Read more

Employment Lifts

Manufacturers have reported some success in recruiting more staff.  PMI employment lifted to a very strong 56.5 in June, up from 52.0 in May, to push further above its longterm norm of 50.6.
Read more

Doug Steel

Doug Steel

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
2020
Feb
2021
Mar
2021
Apr
2021
May
2021
Jun
2021
BNZ – BusinessNZ PMI 56.5 54.3 63.6 58.3 58.6 60.7
Production 59.3 58.3 66.2 63.8 64.8 64.5
Employment 48.0 50.1 53.5 52.8 52.0 56.5
New Orders 58.3 57.7 72.1 60.9 63.5 63.6
Finished Stocks 56.2 51.5 55.2 55.0 53.6 57.3
Deliveries 58.8 48.4 63.0 52.6 53.4 55.0

BNZ – BusinessNZ PMI Time Series

June 2017 – June 2021

International Results

J.P. Morgan Global Manufacturing PMITM

02 Jul 2021
55.5

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

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Our Contributors

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