Steady Pace – PMI

14 Jul 2017

56.2

June

-2.0

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 continue to hover around expansion levels experienced over the last three months, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 56.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2.0 points lower than May, and similar to expansion levels seen in April. Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that the last four months show the sector hovering around an expansion range between 56-58, which is still positive and healthy.

"Encouragingly new orders (58.7) continues to push forward with healthy expansion, followed by production (58.0). However, one noticeable dip was for employment (49.5), which went into minor contraction for the first time since November 2016.

"While expansion eased during June, the proportion of positive comments stood at 68.2%, compared 69.4% in May and 64.7% in April".

BNZ Senior Economist, Craig Ebert, said "that while it was always going to struggle to match its 58.2 level of May, at 56.2 in June the PMI was still nicely above average".

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Main Indicies

Regional Results

Manufacturing Landscape
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Craig Ebert

Senior Economist, BNZ

The PMI

New Zealand's Performance of Manufacturing Index (PMI) has largely maintained its solid momentum of recent months. While it was always going to struggle to match its 58.2 level of May, at 56.2 in June the PMI was still nicely above average.
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Activity

Broadly speaking, the latest PMI was expansive. Certainly, its output index was robust, at a seasonally adjusted 58.0, from 59.5 in May.
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Employment

If there was a weak spot in June's PMI it was arguably in its employment index. Indeed, it slumped to 49.5, so below the breakeven mark of 50. However, it seems too early to judge this as a genuinely negative read.
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Capacity

In any case, NZ manufacturers would appear to be having problems finding staff in the first place. We got this impression from the QSBO variables on difficulty in finding labour.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
2016
Feb
2017
Mar
2017
Apr
2017
May
2017
Jun
2017
BNZ - BusinessNZ PMI 57.855.758.156.758.256.2
Production60.557.860.156.959.558.0
Employment 53.651.553.553.055.049.5
New Orders61.459.063.061.760.658.7
Finished Stocks51.355.753.054.054.654.5
Deliveries56.354.354.454.958.257.2

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – June 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
3 Jul 2017

52.6

International PMI