Down a gear – PMI

12 Jun 2015




Monthly Change


slower rate

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Catherine Beard

Director, Advocacy BusinessNZ

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New Zealand's manufacturing sector experienced another minor dip in its level of expanion during May, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for May was 51.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.2 points lower than April, and the third time in five months that the PMI has been in the 51.0-51.9 range. Despite another expansion dip, the sector has now been in expansion for 32 consecutive months.

BusinessNZ's executive director for manufacturing Catherine Beard said that the May result showed a growing picture of a general slowdown in the level of manufacturing expansion at present.

"The proportion of negative comments for May (47.3%) was up again from the previous month (43% in April). Comments in May were along similar lines to last month in terms of the high value of the New Zealand dollar relative to the Australian, as well as the lacklustre Australian economy. In addition, a number of respondents mentioned the lower dairy payout causing a decrease in new orders."

BNZ senior economist Craig Ebert noted that "whatever is slowing New Zealand's manufacturing production the sector has at least had some relief in the form of a weakening currency of late. NZD/USD has now dropped about 20% from a year ago – to be at its lowest level in 5 years."

"The weaker NZ dollar might be something to support the PMI readings over the coming months."

View the Time Series Data

Main Indicies

Regional Results

Manufacturing Snapshot

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Craig Ebert

Senior Economist, BNZ

Slower expansion

New Zealand's Performance of Manufacturing Index failed to spark back up in May.
Read more  

Q1 activity

New Zealand's March quarter manufacturing production looks to have slipped a little.
Read more  


While the longer leading indicators of construction sector activity remain well above average, they have lost some of their exuberance over the last 6 months or so.
Read more  

Exchange rate

Whatever is slowing New Zealand's manufacturing production the sector has at least had some relief in the form of a weakening currency of late.
Read more .

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies May
BNZ - BusinessNZ PMI 53.951.356.454.651.751.5
Employment 53.050.952.450.051.251.3
New Orders52.450.162.655.750.351.4
Finished Stocks51.556.054.152.952.955.3

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2018 – May 2015

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Jun 2015


International PMI