Offshore Boost – PMI

12 Nov 2015

53.3

October

-1.7

Monthly Change

expanding

slower rate

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Catherine Beard

Executive Director, ManufacturingNZ & ExportNZ

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New Zealand's manufacturing sector continued its expansionary path for October, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 53.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  Although this was 1.7 points lower than September, the level of expansion was still healthy.  The sector has now been in continued expansion since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that despite the slower rate of expansion in October, the proportion of positive comments from manufacturers moved up from September.

"Although the key sub-indices of production (53.1) and new orders (55.9) both experienced lower levels of expansion, they continued to lead the way for October".

"In addition, the proportion of positive comments for October (61.8%) picked up from September (58.7%), with many of these in relation to increased offshore orders and new customers. 

BNZ Senior Economist Doug Steel said "it was interesting to see a decline in inventory this month especially in the context of new orders remaining above-average – it's a signal for more production ahead."

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View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
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Doug Steel

Senior Economist, BNZ

Manufacturing Overview

The Performance of Manufacturing Index remained firmly in expansion territory in October. Sure it eased a little to 53.3 from 55.0 in September, but it remains well above the 50 mark that delineates between expansion and contraction.

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Production, Demand and Inventory

Production continues to expand, albeit at a slower pace in October. We are not reading too much into the monthly slow down at this point. It is only one month and it follows a couple of stronger months.

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Employment

The PMI employment index nudged a bit higher to 52.4 in October from 51.1 in September. This is at a level that suggests the trend in manufacturing employment growth remained positive into the final quarter of 2015.

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Construction, Dairy

The construction outlook remains buoyant. Don't fret over the 5.7% decline in residential building consent numbers for September, following their 5.3% fall in August. These need to be seen in the context of a 20% jump back in July. The trend is upward.

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View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Oct
2014
Jun
2015
Jul
2015
Aug
2015
Sep
2015
Oct
2015
BNZ - BusinessNZ PMI 58.655.253.755.055.053.3
Production61.856.255.955.657.553.1
Employment 56.753.850.753.051.152.4
New Orders60.658.357.757.157.455.9
Finished Stocks52.451.151.752.552.449.2
Deliveries56.655.353.852.855.252.5

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – October 2015

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Nov 2015

51.4

International PMI