Producing the goods – PMI

15 Sep 2017

57.9

August

+2.4

Monthly Change

expanding

faster rate

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Catherine Beard

Executive Director,, ExportNZ & ManufacturingNZ

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New Zealand's manufacturing sector experienced increased expansion levels during August, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).
 
The seasonally adjusted PMI for August was 57.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.4 points higher than July, and close to expansion levels seen in May.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said that the pick-up in expansion levels was good to see after consecutive months of lower expansion.
 
"Expansion was was higher for three of the five sub-indices, with production (60.3) at its highest level since September 2016.  Employment (56.7) also went from strength to strength, with its highest result since September 2014".    
 
"With expansion improving during August, the proportion of positive comments increased to 65%, which was well up on the 56.1% recorded in July, although still lower than 68.2% in June.  In terms of specific comments, there were a number who outlined increased orders from Australia, while various negative comments mentioned uncertainty around the upcoming election".

BNZ Senior Economist, Craig Ebert, said that "while the election polls are equivocal, the PMI is nothing of the sort.  It picked up to a perky 57.9 in August, which puts it even further above its long-term average of 53.3".

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

The PMI

While the election polls are equivocal, the Performance of Manufacturing Index (PMI) is nothing of the sort. It picked up to a perky 57.9 in August, after a reading of 55.5 in July.
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Employment

The employment index of the PMI, not to be overlooked, rocked on at 56.7 in August, from 56.5. For a series that has averaged 50.6 since inception (August 2002) these are fair booming results.
Read more  

Manufacturing Sales

The Economic Survey of Manufacturing showed a 1.0% increase in sales volumes in the June quarter of 2017, seasonally adjusted. When we number-crunch this along with the accompanying inventory data, we get the impression that production in the sector expanded about 1.0% as well.
Read more  

Global

While the NZ PMI remains a (positive) standout on the international stage, manufacturing activity around the world, to be sure, is picking up.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National Indicies Aug
2016
Apr
2017
May
2017
Jun
2017
Jul
2017
Aug
2017
BNZ - BusinessNZ PMI 54.656.758.156.055.557.9
Production55.756.959.457.956.260.3
Employment 46.653.355.449.056.556.7
New Orders58.061.660.358.155.558.4
Finished Stocks52.353.955.053.955.952.8
Deliveries56.454.958.056.956.456.0

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2014 – August 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Sep 2017

53.1

International PMI