BNZ – BusinessNZ
Performance of
Manufacturing
Index

To and Fro – PMI

16 Oct, 2020
54.0
September
+3.0

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector experienced a pick-up in expansion during September, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for September was 54.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was up 3.0 points from August.

BusinessNZ’s executive director for manufacturing Catherine Beard said that given what happened post the nationwide COVID lockdown, a boost in activity post the Auckland lockdown was not a surprise.

“September saw Auckland at level 2.5 or lower, which meant back to business for most manufacturers.  This saw the unadjusted regional activity level for the Northern region recovering from 41.2 in August to 50.6 in September”.     

“All but one of the key sub-indices improved in September, including Employment (51.6), which showed expansion for the first time since February”.  

BNZ Senior Economist, Doug Steel said that “although the September PMI pushed above its long-term average of 53.0, it should not be confused with above average activity levels. Rather, it indicates growth off the low base set earlier in the year. Growth has not yet been enough to recoup previous loses, but some progress is being made”.

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

Progress

September’s Performance of Manufacturing Index (PMI) took a step in the right direction. It lifted to 54.0 from 51.0 in August.  Movement down COVID alert levels no doubt helped in the month, after growth nearly stalled amid August’s tighter restrictions.
Read more

Some Belief

Employment was a heartening feature of September’s PMI. To be sure, the lift to 51.6 from 49.2 in August was not particularly large but it is the first time the PMI employment index has pushed into positive territory since February.
Read more

Supply Side Considerations

In stark contrast to new orders, production, and employment pushing back above their respective long-term averages, the PMI inventory and deliveries indicators are subpar.
Read more

General Pickup

Progress was quite widespread within the September survey with the unadjusted PMI above 50 for nearly all major industries (the exception being the catch all ‘other’ category).
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 Sep
2019
May
2020
Jun
2020
Jul
2020
Aug
2020
Sep
2020
BNZ – BusinessNZ PMI 48.5 40.2 56.3 59.0 51.0 54.0
Production 46.2 39.4 58.6 61.7 51.6 56.5
Employment 49.6 39.3 48.2 47.1 49.2 51.6
New Orders 50.6 40.9 58.1 67.3 54.2 58.1
Finished Stocks 49.3 41.1 57.0 51.7 50.0 49.0
Deliveries 47.4 42.3 58.3 58.5 47.4 49.8

BNZ – BusinessNZ PMI Time Series

September 2018 – September 2022

International Results

J.P. Morgan Global Manufacturing PMITM

01 Oct 2020
52.3

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

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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...

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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...

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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).

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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