In gear – PMI

12 May 2017




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Catherine Beard

Director, Advocacy BusinessNZ

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While New Zealand's manufacturing sector saw expansion in activity soften slightly in April, the sector remains in healthy territory, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for April was 56.8 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.2 points lower than March, but still the second highest value since September 2016.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that the fundamentals of expansion in the sector remain on track.
"The April value for new orders (62.4) was only slightly down from the March value, with the combined result of the two months the highest for new order expansion since 2004.  While production (56.9) dipped in terms of expansion, the remaining indices remained either stable or increased slightly from March".
"Mirroring the overall result, the proportion of positive comments also dipped somewhat from 67.2% in March to 64.7% in April.

BNZ Senior Economist, Craig Ebert, said "there weren't any significant jags in the main component detail of the PMI for April, leaving them all looking good. Overall, April's PMI was another deserving of a big tick".

View the Time Series Data

Main Indicies

Regional Results

Manufacturing Snapshot

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Craig Ebert

Senior Economist, BNZ


New Zealand's Performance of Manufacturing Index (PMI) remained strong in April. It chimed in with a seasonally adjusted 56.8, from 58.0 in March – making the low point back in January, of 53.2, seem but a distant concern.
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The other component detail that was encouraging was regards staffing. April's PMI index on employment was 53.0. This was about as robust as it was in March (53.5) and so still securely above its long-term average, of 50.5.
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To be sure, the indicators around construction remain generally upbeat. However, the technical picture around its activity for the March quarter has a few clouds about it.
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The Reserve Bank was right yesterday, in stating that "Global economic growth has increased and become more broad-based over recent months." The JP Morgan IHS Markit Global Manufacturing PMI supported this.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Apr
BNZ - BusinessNZ PMI 56.754.553.255.758.056.8
Employment 50.651.752.151.553.553.0
New Orders60.852.953.859.063.262.4
Finished Stocks52.752.151.055.652.853.8

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2018 – April 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 May 2017


International PMI