Expansion reigns – PMI

16 Jul 2015




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Catherine Beard

Director, Advocacy BusinessNZ

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New Zealand's manufacturing sector experienced an increase in expansion during June, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 55.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 3.2 points higher than May, and the highest monthly value since February. The sector has now been in expansion for 33 consecutive months.

BusinessNZ's executive director for manufacturing Catherine Beard said that the pick up in activity levels for June was positive news after three consecutive monthly dips in expansion.

"The key indicators of production, new orders and employment all showed stronger expansion, while the proportion of negative comments for June (46.4%) was down slightly from the previous month (47.3%). Positive comments in June were varied, with many outlining specific influences to their business. On the flip side, a number of negative comments were centred on the reduced diary payout, which in turn has led to a decrease in rural spending".

"Overall, the first six months of 2015 have seen more volatility in overall activity compared with recent years, although the index continues to show the sector in growth mode".

BNZ senior economist Doug Steel said 'while economic growth might have slowed a bit from last year's strong pace, these indicators suggest there is still a reasonable rate of expansion occurring despite the clear drag from the dairy sector.'

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Main Indicies

Regional Results

Manufacturing Snapshot

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Doug Steel

Senior Economist, BNZ

Confidence and Activity

With some confidence indicators fading a bit over recent months, we wondered how this might affect the Performance of Manufacturing Index (PMI) which is more a survey of outcomes rather than expectations or sentiment.
Read more  


Last week's Quarterly Survey of Business Opinion (QSBO) displayed a similar message for the manufacturing sector – confidence down but relatively speaking activity indicators robust.
Read more  

Foreign Exchange

The NZ dollar has continue to decline over the past month reinforcing what we wrote last month, 'the weaker NZ dollar might be something to support the PMI readings over coming months'.
Read more  

Building and Dairy

Despite some exuberance coming out of the construction activity indicators over the course of this year growth, the sector still features more in manufacturers' positive comments than the negatives.
Read more .

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
BNZ - BusinessNZ PMI 53.356.354.652.152.055.2
Employment 52.852.550.051.451.754.2
New Orders52.862.555.750.752.358.0
Finished Stocks50.054.152.852.555.051.2

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BNZ - BusinessNZ PMI Time Series

January 2018 – June 2015

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Jul 2015


International PMI