BNZ – BusinessNZ
Performance of
Manufacturing
Index

Wheels keep turning – PMI

14 May, 2021
58.4
April
-5.2

Monthly Change

expanding
slower rate

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

The seasonally adjusted PMI for April was 58.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was 5.2 points down from March, it was still the second highest result since July 2020 when New Zealand came out of lockdown.

BusinessNZ’s executive director for manufacturing Catherine Beard said that the April result was another positive outcome for the sector.  Despite the lower level of expansion in comparison with March, it would have been surprising if the April result had shown even higher expansion levels.

“The two major sub-index values of Production (64.5) and New Orders (60.9) continued to be the main drivers of the April result, with the latter coming off its historic level of expansion.  Both Employment (52.7) and Finished Stocks (55.2) remained at similar levels to March, while Deliveries of Raw Materials (52.4) decreased 10.6 points”.

“Given the lower level of expansion for the current month, the proportion of those outlining positive comments decreased from 58% in March to 53.2% in April.  Comments continued to outline demand side influences, with increased enquiries and orders”.

BNZ Senior Economist, Craig Ebert stated that “firms’ commentary to April’s PMI noted improving conditions internationally, in addition to many global PMIs clearly pointing to economic activity expanding strongly in significant portions of the world right now”.

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

At 58.4 in April, the Performance of Manufacturing Index (PMI) remained relatively racy.  Not as fast as it was in March, with its 63.6 – but that was a local land speed record.
Read more

Supply issues

With this detail, April’s PMI gave the impression of supply side expansion now occurring in the manufacturing sector (after a period of September 2020 to February 2021, when this wasn’t at all obvious).  However, it’s all relative with signs also from the PMI that supply is still not keeping pace with demand.
Read more

Building

One of the positive themes that came through in April’s feedback to the PMI was the building industry. This accords with the recent indicators of construction activity.
Read more

Global rebound

Firms’ commentary to April’s PMI also noted improving conditions internationally, including explicit mention of the United States. The US has certainly been printing some very strong PMI results over the last few months.
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 Apr
2020
Dec
2020
Jan
2021
Feb
2021
Mar
2021
Apr
2021
BNZ – BusinessNZ PMI 26.3 48.3 57.5 54.4 63.6 58.4
Production 20.5 52.5 59.7 58.5 66.5 64.5
Employment 41.9 49.8 56.2 50.3 53.6 52.7
New Orders 18.7 50.3 61.4 57.8 72.3 60.9
Finished Stocks 37.1 45.2 53.2 51.7 55.4 55.2
Deliveries 21.8 44.9 49.1 48.5 63.0 52.4

BNZ – BusinessNZ PMI Time Series

April 2017 – April 2021

International Results

J.P. Morgan Global Manufacturing PMITM

03 May 2021
55.8

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.

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...

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