Stuck in low gear – PMI 14 Sep 2018 52.0August+0.8Monthly Changeexpandingfaster rate Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing expansion remained in low gear for the third consecutive month, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for August was 52.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). While this was 0.8 points higher than July, it remains below the long run average expansion level of 53.4.BusinessNZ's executive director for manufacturing Catherine Beard said that in a similar vein to July, the August results were a mixed bag."While production (52.6) returned to expansion and new orders (53.2) also improved from July, employment (48.1) fell back into contraction to its lowest level since August 2016. Looking at the remaining sub-indices, deliveries (54.3) remained largely unchanged, while finished stocks (51.4) decreased 2.1 points. The proportion of positive comments (56.3%) lifted in August, with construction demand noted by a number of respondents. Those who outlined negative influences typically focussed on a general slowing of market conditions and customer demand". BNZ Senior Economist, Craig Ebert said that "although the PMI improved in August, this was hardly different to the average of the previous two months, leaving the PMI running below normal in its growth signal".View the Time Series Data Main Indicies Regional Results Manufacturing Snapshot Craig Ebert Senior Economist, BNZ The PMIIt looked sweet through much of 2017, but New Zealand’s manufacturing industry has definitely run into some treacle this year. This is the message from the Performance of Manufacturing Index (PMI) anyway.Read more EmploymentNeither can we draw a lot of confidence from the latest PMI in that its employment index is exhibiting signs of stalling. Of course, July’s bounce in this regard, to 51.2, offered some hope that things were improving.Read more SalesWe should also point out, for perspective, industrial activity is not as bad as Monday’s June quarter figures inferred. These registered a 1.2% slump in the volume of manufacturing sales.Read moreFoodIssues of timing have also affected New Zealand’s food processing of late. Granted, this wasn’t obvious in the Q2 manufacturing statistics, which showed just a 1.6% increase in meat and dairy product manufacturing volumes, compared to Q1 (s.a.).Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesAug2017Apr2018May2018Jun2018Jul2018Aug2018 BNZ - BusinessNZ PMI 57.859.154.352.751.252.0 Production60.060.553.251.549.252.6 Employment 56.754.349.749.151.248.1 New Orders58.960.156.456.552.453.2 Finished Stocks52.855.151.750.353.551.4 Deliveries56.060.758.151.354.254.3 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – August 2018 International ResultsJ.P. Morgan Global Manufacturing PMITM 4 Sep 201852.5 In this section Surveys & Statistics Performance of Manufacturing Index Performance of Services Index Compliance Cost Survey Exporters Survey Southern Cross Health Society - BusinessNZ Wellness in the Workplace Survey Reports & Publications BusinessNZ Planning Forecast International BusinessNZ RAT Suppliers Guides & Tools BusinessNZ RAT Suppliers RATs for non-critical business, agencies and organisations BNZ - BusinessNZ PMI Time Series Data View seasonally adjusted and unadjusted time series data for the BNZ - BusinessNZ PMI Sponsor StatementBNZ is delighted to be associated with the Performance of Manufacturing Index (PMI) and BusinessNZ.This association brings together the significant experience of leading business advocacy body BusinessNZ, and business finance specialist BNZ.We look forward to continuing our association with BusinessNZ and associated regional organisations, and to playing our part in the ongoing development of the New Zealand manufacturing sector. View website Media Comment For media comment, please contact: Catherine Beard, BusinessNZ 04 496 6560 Craig Ebert, BNZ 04 474 6799 Technical Comment For more information or assistance with data interpretation, please contact: Steve Summers 04 496 6564 ssummers@businessnz.org.nz Our Contributors The BNZ - BusinessNZ PMI contains data obtained through BusinessNZ's regional organisations About the PMI The BNZ - BusinessNZ Performance of Manufacturing Index is a monthly survey of the manufacturing sector providing an early indicator of activity levels.A PMI reading above 50 points indicates manufacturing activity is expanding; below 50 indicates it is contracting.The main PMI and sub-index results are seasonally adjusted. Related Articles Blooming good – PMI Steady state – PMI Now hiring – PMI Stretching out – PMI Pumping production – PMI View more