Welcome change – PMI

16 Nov 2018

53.5

October

+1.6

Monthly Change

expanding

faster rate

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Catherine Beard

Executive Director, ManufacturingNZ & ExportNZ

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New Zealand's manufacturing sector experienced an increase in expansion for October, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 53.5 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 1.6 points higher than September, and the highest level of activity since May.

BusinessNZ's executive director for manufacturing Catherine Beard said that the October result was a welcome change from where the survey has sat for the previous four months.

"The key sub-indicators of production (52.8) and new orders (56.7) both improved with their highest results since May and April respectively.  Also, after dipping into contraction during various times in 2018, employment (52.4) improved for a second consecutive month.     

In line with the improved overall result, the proportion of positive comments (58.3%) also increased, with demand for products from offshore customers noted throughout.   Others noted seasonal impacts such as improving weather conditions, as well as pre-Christmas season orders". 

BNZ Senior Economist, Doug Steel said that "the improvement in the PMI is not large, but we see it as important to the broader economic narrative".

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

Improvement

There was a glimpse of better trading conditions in October for New Zealand’s manufacturing sector. This follows a few months of slower, constrained expansion.
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The Bigger Picture

The improvement in the PMI is not large, but we see it as important to the broader economic narrative. With many measures of business confidence wallowing in deeply negative territory for some time now, markets have been wary that the economy may veer in that direction.
Read more

Employment, New Orders Lift

Despite strong economy wide employment growth in Q3, as noted above, manufacturing was one of the more subdued sectors. This follows generally flat readings in the PMI employment component over that period.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesOct
2017
Jun
2018
Jul
2018
Aug
2018
Sep
2018
Oct
2018
BNZ - BusinessNZ PMI 56.852.751.252.151.953.5
Production59.451.549.252.649.952.8
Employment 51.348.951.449.350.952.4
New Orders59.056.452.453.452.956.7
Finished Stocks54.550.353.551.552.853.0
Deliveries57.851.454.054.052.350.5

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2013 – October 2018

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Nov 2018

52.1

International PMI