Back in black – PMI 17 Jul 2020 56.3June+16.5Monthly Changeexpandingpreviously contracting Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing sector showed expansion for the first time since February, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for June was 56.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up 16.5 points from May, and the highest result since April 2018.BusinessNZ's executive director for manufacturing Catherine Beard said that a return to expansion for the sector was obviously a welcome result given the very difficult period experienced over the last three months. However, given the path towards recovery has simply meant trying to get back to standard operational levels for many, it was just a matter of time before the sector would be back in black. "Leading the way were the key indices of production and new orders (both at 58.6). Like the main result, these were at the highest level of expansion since April 2018. Overall, we should remain cautious that one expansionary result does not represent a trend given ongoing offshore uncertainty around COVID-19. A consistent trail of new orders over the coming months would go a long way towards ensuring the second half of 2020 is better than the first. BNZ Senior Economist, Doug Steel said that “New Zealand’s PMI average through April and May was at the bottom when looking across usual comparator countries. But with the country at alert level 1, activity has picked up. Long may it continue".View the Time Series Data Main Indicies Regional Results Manufacturing Snapshot Doug Steel Senior Economist, BNZ A SparkWe openly discussed in last month’s commentary that the Performance of Manufacturing Index (PMI) had the potential to show ‘a bit more spark’ in June. And it has. The PMI lifted to an expansionary 56.3 in June from a sombre 39.8 in May and a dreadful 26.0 back in April.Read more Reopening In A Very Tough QuarterThe reopening of the economy post-lockdown, including the move to COVID alert level 1 on the night of 8 June, has seen more activity take place compared to prior months. But June’s positive result is not enough to rescue the second quarter of the year overall, through which the PMI averaged a very weak 40.7.Read more Employment Still FallingAll major PMI components printed above their respective long-term averages in June, except for employment. At 48.5, not only was the employment index below its long-term average of 50.5 but it was also sub-50 indicating the manufacturing sector continues to shed staff.Read moreTurning TablesNZ’s PMI is now higher than other countries we often compared ourselves to. This follows a period of NZ underperformance. The turnaround tallies with suggestions that NZ is enjoying more freedoms than many elsewhere after undergoing COVID restrictions that were tighter than most.Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesJune2019Feb2020Mar2020Apr2020May2020Jun2020 BNZ - BusinessNZ PMI 51.354.137.326.039.856.3 Production51.354.731.219.138.158.6 Employment 48.351.144.941.339.248.5 New Orders52.756.536.617.439.558.6 Finished Stocks56.552.944.537.441.556.6 Deliveries48.553.239.225.441.157.3 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – June 2020 International ResultsJ.P. Morgan Global Manufacturing PMITM 1 Jul 202047.8 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 Doug Steel, 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