Steady state – PMI

15 Sep 2016

55.1

August

-0.4

Monthly Change

expanding

slower rate

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Catherine Beard

Executive Director, ManufacturingNZ & ExportNZ

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New Zealand's manufacturing sector remained in a steady state of expansion, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for August was 55.1 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.4 points lower than July, but still represented healthy growth for manufacturing in New Zealand. The sector remains solidly in expansion in almost all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that the five sub-indexes showed varied movements in activity since June.

"Employment (47.4) experienced the biggest hit after four consecutive increases in expansion. Production (55.7) slipped slightly, although new orders (59.1) remained strong".  

"The slight dip in overall expansion was mirrored by the proportion of positive comments decreasing to 58.4% for August, compared with 62.8% in June to 63.8% in July. A number of negative comments were centered on this time of year being typically quiet, while positive comments tended to focus on ongoing orders, as well as preparation for the summer season".

BNZ Senior Economist, Craig Ebert, said "although the seasonally adjusted August result eased slightly to 55.1, this was a trivial move statistically, leaving the PMI happily north of its long-term average of 53.1".

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

The PMI

New Zealand's Performance of Manufacturing Index (PMI) was still looking good in August. Sure, it eased to a seasonally adjusted level of 55.1, compared to 55.5 in July. However, this was a trivial move, statistically, leaving the PMI happily north of its long-term average of 53.1.

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Output

A still-strong new-orders index (59.1) was important in keeping the August PMI looking good. However, its production index lost a bit more momentum, coming in at a seasonally adjusted 55.7, from 57.8 in July and a peak of 60.9 back in May.

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Employment

Having been relatively strong over recent months, the PMI employment index sagged quite a bit in August. Indeed, it fell into contraction territory, with a seasonally adjusted reading of 47.7, from 54.4 in July.

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Resources

A quiet achiever in the latest PMI survey remains Petroleum, Coal, Chemical and Associated Product. Indeed, it has been robust for a good 12 months now, with an index reading averaging 58.9.

Read more .

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Aug
2015
Apr
2016
May
2016
Jun
2016
July
2016
Aug
2016
BNZ - BusinessNZ PMI 55.356.657.057.555.555.1
Production55.858.860.960.457.855.7
Employment 53.450.353.253.654.447.4
New Orders57.059.559.961.358.159.1
Finished Stocks52.252.849.450.749.250.7
Deliveries53.256.555.256.155.155.9

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – August 2016

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Sep 2016

50.8

International PMI