BNZ – BusinessNZ
Performance of
Manufacturing
Index

Welcome change – PMI

16 Nov, 2018
53.5
October
+1.6

Monthly Change

expanding
faster rate

New Zealand’s manufacturing sector experienced an increase in expansion for October, according to the latest BNZ – BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 53.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.6 points higher than September, and the highest level of activity since May.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the October result was a welcome change from where the survey has sat for the previous four months.

“The key sub-indicators of production (52.8) and new orders (56.7) both improved with their highest results since May and April respectively.  Also, after dipping into contraction during various times in 2018, employment (52.4) improved for a second consecutive month.     

In line with the improved overall result, the proportion of positive comments (58.3%) also increased, with demand for products from offshore customers noted throughout.   Others noted seasonal impacts such as improving weather conditions, as well as pre-Christmas season orders”. 

BNZ Senior Economist, Doug Steel said that “the improvement in the PMI is not large, but we see it as important to the broader economic narrative”.

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

Improvement

There was a glimpse of better trading conditions in October for New Zealand’s manufacturing sector. This follows a few months of slower, constrained expansion.
Read more

The Bigger Picture

The improvement in the PMI is not large, but we see it as important to the broader economic narrative. With many measures of business confidence wallowing in deeply negative territory for some time now, markets have been wary that the economy may veer in that direction.
Read more

Employment, New Orders Lift

Despite strong economy wide employment growth in Q3, as noted above, manufacturing was one of the more subdued sectors. This follows generally flat readings in the PMI employment component over that period.
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 Oct
2017
Jun
2018
Jul
2018
Aug
2018
Sep
2018
Oct
2018
BNZ – BusinessNZ PMI 56.8 52.7 51.2 52.1 51.9 53.5
Production 59.4 51.5 49.2 52.6 49.9 52.8
Employment 51.3 48.9 51.4 49.3 50.9 52.4
New Orders 59.0 56.4 52.4 53.4 52.9 56.7
Finished Stocks 54.5 50.3 53.5 51.5 52.8 53.0
Deliveries 57.8 51.4 54.0 54.0 52.3 50.5

BNZ – BusinessNZ PMI Time Series

October 2018 – October 2022

International Results

J.P. Morgan Global Manufacturing PMITM

02 Nov 2018
52.1

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