Time to go steady – PMI 14 Jul 2011 Activity in the manufacturing sector for June saw an ongoing and steady level of expansion, according to the latest BNZ-BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for June was 54.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). Although this was slightly down on the May result of 54.7, combined it was the strongest two months of manufacturing activity since early 2010.BusinessNZ's executive director for manufacturing Catherine Beard said that part of the relative positive and steady result for the last two months can be attributed to our Trans-Tasman cousins."Many of the positive comments by manufacturers have centred on increased orders and sales from Australia given the competitive exchange rate at present. While issues such as the ongoing effects from earthquakes and the economic downturn are still mentioned, the Australian situation is as least providing a valuable market opportunity for businesses looking to broaden their sales base."BNZ economist Doug Steel said that there seemed to be plenty of reasons for the rate of manufacturing expansion to cool a bit in June, but it didn't."This is fundamentally encouraging. Export growth is holding up despite its many threats, including the strength of the currency, and domestic manufacturing sales look likely to strengthen with the wider economic recovery we foresee. All up, this survey gives a sense of sure and steady improvement."Four of the five seasonally adjusted main diffusion indices were in expansion during June, with deliveries (56.1) again leading the way, followed by new orders (55.6) and production (52.4). Employment (51.7) experienced its second consecutive increase in expansion, while finished stocks (48.4) continued to slip lower.Unadjusted results by region showed three of the four main regions in expansion, with the Northern region (55.2) leading the way, followed by the Central region (53.9). The Canterbury/Westland region (53.9) dropped 5.6 points from May, although encouragingly remained in expansion. In contrast, the Otago/Southland region (41.3) sunk deeper into contraction during June, with five consecutive months in contraction.Click here to view the June PMIClick here to view PMI time series dataFor media comment:Catherine Beard 04 496 6560 or 027 463 3212Doug Steel 04 474 6923 For more information or assistance with data interpretation, contact Stephen Summers, ph 04 496 6564, ssummers@businessnz.org.nz. We acknowledge the ongoing support of our sponsor The BNZ - BusinessNZ Performance of Manufacturing Index (PMI) is proudly sponsored by BNZ and draws on the depth of member companies associated with BusinessNZ: Major Sponsor Supporting Partners In this section Media Releases Commentaries Photos Back to Business Cocktail Party 2019 State of the Nation Lunch Back to Business 2020 Deloitte and Chapman Tripp Election Conference 2020 - Leaders' Address Back to Business 2021 PMI Results July ReleaseValue: 52.7Change: +2.7Status: expanding Learn more . BNZ - BusinessNZ PMI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI. Related Articles On the margins – PMI Mid year blues – PMI Soldering on – PMI Slow grind – PMI Slowly does it – PMI View more Sponsor StatementBNZ 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. View website