BNZ – BusinessNZ
Performance of
Manufacturing
Index

Tough Times

13 Jul, 2023
47.5
June
-1.2

Monthly Change

Contracting
Faster Rate

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 expanding; below 50.0 that it is declining). This was the lowest level of activity since November 2022, and well below the long-term average activity rate of 53.0.

BusinessNZ’s Director, Advocacy Catherine Beard said that the sector remains entrenched in contraction, with eight of the last ten months showing overall activity below the 50.0 point mark.

“The key sub-index values of Production (47.5) and New Orders (43.8) dragged the June result further into contraction, while Employment (47.0) also shifted down a gear. Any return to long run activity levels needs these sub-index values returning to positive territory.

The further drop in activity also saw the proportion of negative comments increasing to 74.5% in June, compared with 66.7% in May and 70.3% in April. Manufacturers saw declining demand, cost increases/inflation and production/staffing issues as the key negative influences on activity for the current month.

BNZ Senior Economist, Craig Ebert stated that “for a weaker reading one has to go back to August 2021 (39.0), when the Delta strain outbreak of COVID-19 invoked level-4 lockdowns”.

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

PMI

New Zealand’s Performance of Manufacturing Index (PMI) continued to struggle in June, subsiding to 47.5, from 48.7 in May.

Read more

Patchy like the QSBO

We did wonder if the NZ PMI was going to remain soft in Juneafter last week’s NZIER Quarterly Survey of Business Opinion (QSBO) showed patchiness amongst its manufacturing cohort.

Read more

Q2 manufacturing activity?

The PMI also sustained sub-50 readings on Production (47.5) – for the fifth month running. While this is a weak undercurrent, it might not mean another fall is on the cards for manufacturing activity in the Q2 GDP accounts.

Read more

Sundries

This feature for food manufacturing is mostly timing, however, and portends a correction in activity in Q3, back to trend. Underneath it all, June’s PMI was not cheering.

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 2022 Feb 2023 Mar 2023 Apr 2023 May 2023 Jun 2023
BNZ – BusinessNZ PMI 49.7 51.6 48.0 48.7 48.7 47.5
Production 47.7 48.8 43.5 47.2 46.0 47.5
Employment 51.1 55.1 47.4 47.6 49.3 47.0
New Orders 48.5 51.4 46.6 49.3 50.2 43.8
Finished Stocks 50.1 55.2 48.5 52.6 51.6 52.2
Deliveries 50.8 52.2 53.4 50.5 46.1 50.5

BNZ – BusinessNZ PMI Time Series

January 2018 – June 2023

International Results

J.P. Morgan Global Manufacturing PMITM

03 Jul 2023
48.8

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.

Technical Contact

Stephen Summers
Economist, BusinessNZ

[email protected]

PMI Releases

Lack of orders

Activity in New Zealand’s manufacturing sector experienced a drop in May and ongoing contraction of the sector, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for May was 47.2 (a PMI reading above 50.0...

To and Fro

Activity in New Zealand’s manufacturing sector experienced a pick up during April, although still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for April was 48.9 (a PMI reading...

One step back

Activity in New Zealand’s manufacturing sector experienced stronger contraction during March, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for March was 47.1 (a PMI reading above 50.0 indicates that...

On the improve

Activity in New Zealand’s manufacturing sector continued to show improvement in February, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for February was 49.3 (a PMI...

Stuck in low gear

Activity in New Zealand’s manufacturing sector improved in January, but still remained in contraction, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI). The seasonally adjusted PMI for January was 47.3 (a PMI reading above 50.0...

Our Contributors

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