Solid September – PMI

13 Oct 2017

57.5

September

-0.4

Monthly Change

expanding

slower rate

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Catherine Beard

Executive Director,, ExportNZ & ManufacturingNZ

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Activity in New Zealand's manufacturing sector during September was largely unchanged from the previous month, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for September was 57.5 (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 August, but continued to display very healthy levels of expansion.  Overall, the sector has remained in expansion in all months since October 2012.

BusinessNZ's executive director for manufacturing Catherine Beard said despite some uncertainty in the market, the sector has continued on with business as usual.

"It was encouraging to see the proportion of positive comments increase further to 69.5%, compared with 65% in August.  In terms of specific comments, a clear proportion of negative comments continued to mention general uncertainty around the election.  Positive comments were varied, but a number mentioned increased orders and sales both domestically and offshore".

BNZ Senior Economist, Craig Ebert, said that "the manufacturing industry would seem to be forging ahead quite nicely. This was definitely the message in the PMI’s production index for September, while the tone from its new orders index remained relatively upbeat too".

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Main Indicies

Regional Results

Manufacturing Landscape
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Craig Ebert

Senior Economist, BNZ

The PMI

September’s Performance of Manufacturing Index (PMI) proved to be about as strong as it was in August. Index wise, it was 57.5 versus 57.9, seasonally adjusted.
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Activity/Sales

Even so, the manufacturing industry would seem to be forging ahead quite nicely. This was definitely the message in the PMI’s production index for September, with its seasonally adjusted result of 59.6.
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Employment

Not every aspect of September’s PMI was expansive, however. In fact, its employment index fizzled out to 50.7, having been running nicely about the 56.0 mark in July and August.
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Capacity

The other reason we can imagine manufacturers are still out there hunting for staff is the fact that they are reporting increased difficulty in finding them. This is particularly the case for skilled staff (as it is for the economy at large).
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View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesSep
2016
May
2017
Jun
2017
Jul
2017
Aug
2017
Sep
2017
BNZ - BusinessNZ PMI 57.258.156.055.657.957.5
Production60.659.457.756.760.459.6
Employment 50.955.449.056.356.550.7
New Orders59.360.358.255.859.060.4
Finished Stocks54.755.053.955.952.955.4
Deliveries56.758.156.956.556.158.3

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BNZ - BusinessNZ PMI Time Series

July 2014 – September 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Oct 2017

53.2

International PMI