Steady and Stable Path – PMI

17 Nov 2017

57.2

October

-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 October remained within a fairly tight band of expansion over recent months, according to the BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 57.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was again 0.4 points lower than the previous month, the figure still represented very healthy and consistent 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 that the fundamentals of the October result remained healthy.

"The two main sub index values of production (60.7) and new orders (60.1) indicated strong expansion for October.  Also, while the proportion of positive comments dipped in October (64.2%) compared with 69.5% in September, it was still similar to the 65% recorded in August.

BNZ Senior Economist, Craig Ebert, said that "October's result was certainly encouraging, as was September's - bearing in mind the PMI is about the nuts and bolts of activity rather than sentiment about where things might be heading".

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Main Indicies

Regional Results

Manufacturing Landscape
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Craig Ebert

Senior Economist, BNZ

The PMI

Was New Zealand’s manufacturing sector put off by the recent transition to a new government? Not by the look of October’s Performance of Manufacturing Index (PMI). In fact, it held to a solidly expansive level of 57.2, versus 57.6 in September.
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Exchange Rate

By the same token, it might be too soon to assume that local manufacturing activity has been boosted by the recent fall in the exchange rate.
Read more

Employment

If there were some chinks in October’s PMI they were in the area of employment. We noted last month how the PMI jobs index fizzled out to 50.7 for September, having been running nicely about the 56.0 mark in July and August.
Read more

Food

The other thing we are keeping an eye on in respect to the local manufacturing sector is the performance of food processing. We say this with indications that the volume of dairy and meat processing declined in the September quarter, seasonally adjusted.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesOct
2016
Jun
2017
Jul
2017
Aug
2017
Sep
2017
Oct
2017
BNZ - BusinessNZ PMI 55.156.055.658.057.657.2
Production58.157.756.760.559.760.7
Employment 53.448.956.056.650.851.0
New Orders55.258.155.859.160.760.1
Finished Stocks52.553.955.952.955.455.0
Deliveries55.457.056.556.158.357.9

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2014 – October 2017

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Nov 2017

53.3

International PMI