BNZ – BusinessNZ
Performance of
Manufacturing
Index

Uptick in expansion

16 May, 2025
53.9
April
+0.7

Monthly Change

Expanding
Faster Rate

New Zealand’s manufacturing sector showed an uptick in expansion during April, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for April was 53.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up from 53.2 in March and the fourth month in a row showing expansion.  The survey was also above the average of 52.5 since it began.

BusinessNZ’s Director, Advocacy Catherine Beard said that the April result continued a consistent run of expansion for the sector during last three months.

“All of the sub-index values were in expansion during April. The key sub-index results for Production (53.8) and New Orders (51.4) were both in positive territory, while Employment (55.0) displayed its highest level of expansion since July 2021″.

Despite the improvement in expansion during April, the proportion of negative comments from respondents increased slightly to 58% in April, compared with 57.5% in March, but still down from 59.5% in February.  Negative comments during April saw some manufacturers facing a slowdown driven by high costs, global and local economic uncertainty.  In terms of positive comments, other manufacturers reported modest growth, driven by rising demand, infrastructure projects, and strong niche markets, despite lingering caution from inflation and supply challenges.

BNZ’s Senior Economist Doug Steel said that “activity is not surging, but a manufacturing recovery seems to be underway with the PMI having improved substantially from its low of 41.4 last June. That said, there remain questions around how sustainable it is given uncertainty stemming from offshore”.

Production
53.8
Employment
55.0
New Orders
51.4
Finished Stocks
53.2
Deliveries
56.2
51.1
56.6
51.6
29.7
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 trending higher

The Performance of Manufacturing Index (PMI) continues to trend upwards, lifting from 53.2 to 53.9 in April. This is the fourth consecutive month above 50 and is further evidence the sector has turned the corner.

Read more

Recovery expected

In April, the PMI new orders index lifted to 51.4, back above the breakeven 50 mark. While new orders are no longer going backwards, they also haven’t picked up in a meaningful way.

Read more

Reduced labour costs

The PMI employment index nudged up to 55.0 in April, consistent with a rapidly expanding workforce. This strength is yet to materialise in official labour market statistics, where the number of jobs in manufacturing is still 2.5% below year earlier levels.

Read more

Falling interest rates

Since August, the Reserve Bank has cut the Official Cash Rate (OCR) by 200 basis points from 5.50% to 3.50%. Both the reductions to date, and the expectation for further cuts, will be providing support to the sector.

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 Apr 2024 Dec 2024 Jan 2025 Feb 2025 Mar 2025 Apr 2025
BNZ – BusinessNZ PMI 48.4 46.5 51.8 54.0 53.2 53.9
Production 49.8 43.1 51.7 52.7 54.1 53.8
Employment 50.6 48.0 50.9 54.3 54.7 55.0
New Orders 44.9 47.0 51.3 51.6 49.8 51.4
Finished Stocks 50.5 46.8 52.6 54.5 56.2 53.2
Deliveries 47.5 50.4 52.2 56.2 55.6 56.2

BNZ – BusinessNZ PMI Time Series

January 2020 – April 2025

International Results

J.P. Morgan Global Manufacturing PMITM

02 May 2025
49.8
USA
50.2
UK
45.4
Eurozone
49.0
China
50.4
Japan
48.7
Australia
51.7
NZ
53.9

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