Stretching out – PMI

14 Jul 2016

57.7

June

+0.5

Monthly Change

expanding

faster rate

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Catherine Beard

Executive Director, ManufacturingNZ & ExportNZ

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New Zealand's manufacturing sector stretched further upwards in terms of activity levels, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 57.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 0.5 points higher than May, and almost on par with the level of expansion in January. The sector has been in expansion in almost all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that like last month, the fundamental components of the survey continued to hold up well.

"Both production (60.8) and new orders (61.6) remained above the 60-point range, while employment (53.5) experienced its fourth consecutive rise in activity levels."   
 
"Despite the proportion of positive comments falling slightly from 66.4% in May to 62.8% in June, a combination of seasonal factors, expanding markets and construction projects helped keep the positive trend going."

BNZ Senior Economist, Craig Ebert, said "While we are obviously encouraged by June's (post-Brexit) PMI we are also conscious of the soaring currency. Good economic news comes with a price in FX markets."

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
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Craig Ebert

Senior Economist, BNZ

The PMI

June's Performance of Manufacturing Index (PMI) took Brexit in its stride, firming half a point, to 57.7. The survey was in the field the first full week of July. And not one response referenced Brexit.

Read more  

QSBO Manufacturers

In keeping with PMI readings over recent months, manufacturers responding to the NZIER's June quarter Quarterly Survey of Business Opinion (QSBO) perked up.

Read more  

Capacity Constraint

The local construction sector is becoming a driver of local manufacturing activity. The NZIER QSBO made this clear. It also highlighted, however, that capacity constraints were coming into play.

Read more  

Exchange Rates

While we are obviously encouraged by June's (post-Brexit) PMI we are also conscious of the soaring currency. Good economic news comes with a price in FX markets.

Read more .

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Jun
2015
Feb
2016
Mar
2016
Apr
2016
May
2016
Jun
2016
BNZ - BusinessNZ PMI 55.455.854.856.657.257.7
Production56.256.555.458.761.260.8
Employment 53.448.949.150.153.153.5
New Orders58.460.458.059.760.161.6
Finished Stocks51.956.954.853.049.450.9
Deliveries55.256.151.956.655.356.2

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – June 2016

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Jul 2016

50.4

International PMI