Evenly Spread – PMI

11 Aug 2017

55.4

July

-0.6

Monthly Change

expanding

slower rate

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Catherine Beard

Executive Director, ManufacturingNZ & ExportNZ

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New Zealand's manufacturing sector saw expansion levels evenly spread across the five main indices during July, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).
 
The seasonally adjusted PMI for July was 55.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was slightly lower than June, and similar to expansion levels seen in February.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that while the main result experienced a second consecutive dip in expansion levels, the make-up of the sub-indices made for interesting reading.
 
"Expansion across the five indices was very even for July, with the total difference between the lowest and highest results at only 1.2 points.  Of particular note was the highest level of expansion for employment (56.4) since September 2014, along with finished stocks (also at 56.4).  However, both production (56.0) and new orders (55.4) continued to slip in terms of expansion".   
 
"With expansion again easing during July, the proportion of positive comments dropped to 56.1%, compared with 68.2% in June and 69.4% in May".

BNZ Senior Economist, Doug Steel, said that "at 55.4 in July, the PMI remains firmly above its long term average of 53.3. It bodes well for manufacturing GDP growth to continue outperforming its long term average as it has for much of the past three years".

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Main Indicies

Regional Results

Manufacturing Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

PMI

New Zealand's Performance of Manufacturing Index (PMI) continues to show solid momentum. At 55.4 in July, it remains firmly above its long term average of 53.3. It bodes well for manufacturing GDP growth to continue outperforming its long term average as it has for much of the past three years.
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Housing Cooling

The housing market has cooled. The number of house sales is down about a quarter on a year ago, as LVR restrictions tightened and mortgage rates edged higher independent of the OCR.
Read more  

More Jobs

Manufacturing sector employment has been expanding over the past year.  Last week's official figures show manufacturing employment up 1.2%, or 3,000 people, on a year earlier.  Filled jobs were up 2.0% and paid hours 3.3% higher.  Forward indicators remain positive.
Read more  

Global

JP Morgan's Global PMI has improved from year earlier levels, averaging near 53 over the past six months from a bit over 50 a year earlier. Strong momentum in NZ's PMI no longer stands out from the likes of Australia, the US or the Eurozone.
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View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Jul
2016
Mar
2017
Apr
2017
May
2017
Jun
2017
Jul
2017
BNZ - BusinessNZ PMI 55.658.056.758.156.055.4
Production58.160.256.959.357.856.0
Employment 53.853.553.255.449.056.4
New Orders58.863.161.560.258.055.4
Finished Stocks49.553.054.054.854.656.4
Deliveries55.754.354.958.157.056.6

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2012 – July 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Aug 2017

52.7

International PMI