Levels of difference – PMI

11 Sep 2020

50.7

August

-8.3

Monthly Change

expanding

slower rate

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Catherine Beard

Executive Director, ExportNZ & ManufacturingNZ

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Expansion in New Zealand's manufacturing sector dropped during August, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for August was 50.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was down 8.3 points from July, and the lowest result since May.

BusinessNZ's executive director for manufacturing Catherine Beard said that the Auckland lockdown obviously had a strong influence on results.

"After two months of playing catch-up, the level 3 lockdown placed on New Zealand's largest population and economic region meant the sector would experience another hit.  While results in other parts of the country led to the national result keeping its head above water, the latest results show how fragile and short the recovery can be."     

"While the key indices of new orders (54.0) and production (51.1) still remained positive, employment (49.0) remained in contraction for the sixth consecutive month." 

BNZ Senior Economist, Doug Steel said that “an outcome above the 50 breakeven mark – indicating a modicum of growth occurred in the month – is arguably a commendable result given more than a third of the country moved into alert level 3 for more than half of the month."

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
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Doug Steel

Senior Economist, BNZ

Restart Restricted

After the euphoria and freedoms of alert level 1 in July came the resurgence of COVID and tighter restrictions during August, particularly in Auckland. The impact is clear in the Performance of Manufacturing Index.
Read more

Unsettled Trading Conditions

Underneath the ‘ok given the circumstances’ headline figure, there was a wide range of outcomes. One sign of disparity came from respondents being nearly evenly split between noting positive or negative factors on their activity.
Read more

Demand Variable But Improving

New orders remain the strongest sub component of the PMI.  Yes, it fell from an exceptionally strong 67.5 in July to 54.0 in August. But this is the third consecutive month above 50 suggesting underlying demand is improving, if variable.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesAug
2019
Apr
2020
May
2020
Jun
2020
Jul
2020
Aug
2020
BNZ - BusinessNZ PMI 48.626.040.356.359.050.7
Production48.818.939.358.661.851.1
Employment 50.141.039.348.346.949.0
New Orders46.816.340.758.167.554.0
Finished Stocks52.437.841.157.251.750.0
Deliveries48.325.042.158.058.547.2

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2016 – August 2020

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Sep 2020

51.8

International PMI