Trans-Tasman angst – PMI

14 May 2015

51.8

April

-2.8

Monthly Change

expanding

slower rate

View Catherine Beard's profile

Catherine Beard

Executive Director,, ExportNZ & ManufacturingNZ

View profile

New Zealand's manufacturing sector experienced a lower level of activity in April, although still showing overall expansion, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for April was 51.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.8 points lower than March, and close to the level of expansion experienced in January.  Despite the expansion dip, the sector has now been in expansion for 31 consecutive months.

BusinessNZ's executive director for manufacturing Catherine Beard said that comments from respondents provided a useful picture of why the level of expansion dropped from the previous month.

"Although the proportion of negative comments for April (43%) did not increase by a significant proportion from March, there was a distinct pattern of respondents mentioning the current economic situation across the ditch.  Some outlined the high value of the New Zealand dollar relative to the Australian, while others mentioned the general lacklustre Australian economy causing lower demand for New Zealand products."

BNZ senior economist Doug Steel said "While the New Zealand dollar was high against the Australian dollar in April it has retreated rather rapidly in May. This, if sustained, should lend support to the PMI over coming months."

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

Manufacturing slows in April

The manufacturing sector has slowed down a touch in April, judging by the latest Performance of Manufacturing Index.
Read more  

Aussie, Aussie, Aussie

The above is not to deny that there are some headwinds for the manufacturing sector, with respondents referencing economic conditions in Australia and the NZD/AUD exchange rate as an example.
Read more  

Primary influence on secondary production

Tightening conditions in some primary sectors are also filtering through to the manufacturing sector.
Read more  

Jobs

Despite the challenges noted above there is also decent economic growth occurring which the manufacturing sector is part of and is tapping into.
Read more .

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies April
2014
Dec
2014
Jan
2015
Feb
2015
Mar
2015
Apr
2015
BNZ - BusinessNZ PMI 55.057.151.356.554.651.8
Production55.862.047.452.655.152.2
Employment 53.449.950.952.449.851.0
New Orders55.761.050.162.655.850.4
Finished Stocks50.651.055.954.052.852.7
Deliveries55.458.053.957.854.652.2

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2014 – April 2015

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
4 May 2015

51.0

International PMI