Hanging on – PMI

12 Oct 2018

51.7

September

-0.3

Monthly Change

expanding

slower rate

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Catherine Beard

Executive Director, ManufacturingNZ & ExportNZ

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New Zealand's manufacturing sector remained within a tight and low level of expansion for September, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for September was 51.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.3 points lower than August, and within a tight band of only 1.5 points for the last four months.

BusinessNZ's executive director for manufacturing Catherine Beard said that the September results confirmed that the sector is currently stuck in low expansion mode.

"While it was good to see employment (50.5) returning to some level of expansion, in contrast production (49.6) returned to contraction.  Also, new orders (52.4) displayed weaker expansion for September, which may affect production figures in the months ahead.     

The proportion of positive comments (53.4%) remains weak, with those who outlined negative influences typically focussed on further falls in customer demand (both onshore and offshore), as well as comments centred on a general slowdown". 

BNZ Senior Economist, Craig Ebert said that “while New Zealand’s manufacturing sector remains stuck in a low gear, we should remain cautious about how much expansion we can reasonably expect of it given the industry remains extremely stretched for resources”.

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

The PMI

New Zealand’s manufacturing sector remains stuck in a low gear. That’s the message from the latest Performance of Manufacturing Index (PMI).
Read more

QSBO

That manufacturers were finding it tough going was also the message from the latest NZIER Quarterly Survey of Business Opinion (QSBO). In this, manufacturers expressed the weakest confidence (in the general economic economic) of all the sectors canvassed.
Read more

Employment

The QSBO also gelled with recent detail in the PMI, in suggesting a loss of moment in hiring - albeit not a complete loss.
Read more

Capacity

But how weak is NZ manufacturing, really? We pose this question noting that, for all of its slow indicators, the industry remains extremely stretched for resources.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesSep
2017
May
2018
Jun
2018
Jul
2018
Aug
2018
Sep
2018
BNZ - BusinessNZ PMI 57.454.452.751.252.051.7
Production59.053.251.549.152.549.6
Employment 50.749.649.151.449.050.5
New Orders60.056.556.552.353.152.4
Finished Stocks54.851.750.353.551.452.7
Deliveries57.958.151.554.054.152.5

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – September 2018

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Oct 2018

52.2

International PMI