In the zone – PMI

11 Nov 2016

55.2

October

-2.3

Monthly Change

expanding

slower rate

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Catherine Beard

Executive Director,, ExportNZ & ManufacturingNZ

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New Zealand's manufacturing sector experienced almost identical levels of expansion as August, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI) for October.
 
The seasonally adjusted PMI for October was 55.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.3 points lower from September, and the third time in four months activity has been in the 55 point range.  The sector remains solidly in expansion in almost all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that results over most of 2016 have been in a fairly consistent zone of expansion.
 
"The headline result for the first 10 months of 2016 shows expansion only varying by 2.8 points, with most months seesawing between the 55 and 57 point range.  At this stage 2016 is shaping up as better than 2015 for the sector, although the next two months will determine the extent to which the sector can keep momentum going to provide healthy levels of expansion".  

BNZ Senior Economist, Craig Ebert, said that "although the PMI couldn't quite hang onto its relatively high level of 57.5 in September, at 55.2 in October it was still handsomely positive – certainly well above its long-term average of 53.2".

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Main Indicies

Regional Results

Manufacturing Landscape
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Craig Ebert

Senior Economist, BNZ

The PMI

New Zealand's Performance of Manufacturing Index (PMI) couldn't quite hang onto its relatively high level of 57.5 in September. However, at 55.2 in October it was still handsomely positive.
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Employment

Relatively speaking, however, it was the employment index in October's PMI that seemed to provide the most encouragement. It made it up to a seasonally adjusted level in September and a below-the-line result of 47.3 back in August.
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Investment

The local manufacturing sector should surely benefit from the impetus in the domestic business investment cycle. This cycle is looking strong, as capacity constraints begin to bite.
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Exchange Rate

Of course, most firms wanting to invest, especially in plant machinery and equipment, will have some option to do so by sourcing from overseas rather than locally. The relative strength in the currency will aid this.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Oct
2015
Jun
2015
Jul
2016
Aug
2016
Sep
2016
Oct
2016
BNZ - BusinessNZ PMI 53.557.655.655.157.555.2
Production53.160.558.155.961.257.9
Employment 51.553.653.847.350.853.8
New Orders56.561.558.159.060.454.8
Finished Stocks49.750.549.551.654.752.3
Deliveries53.556.355.356.157.655.7

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2014 – October 2016

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Nov 2016

52.0

International PMI