To and Fro – PMI 16 Oct 2020 54.0September+3.0Monthly Changeexpandingfaster rate Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing sector experienced a pick-up in expansion during September, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for September was 54.0 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was up 3.0 points from August.BusinessNZ's executive director for manufacturing Catherine Beard said that given what happened post the nationwide COVID lockdown, a boost in activity post the Auckland lockdown was not a surprise."September saw Auckland at level 2.5 or lower, which meant back to business for most manufacturers. This saw the unadjusted regional activity level for the Northern region recovering from 41.2 in August to 50.6 in September". "All but one of the key sub-indices improved in September, including Employment (51.6), which showed expansion for the first time since February". BNZ Senior Economist, Doug Steel said that “although the September PMI pushed above its long-term average of 53.0, it should not be confused with above average activity levels. Rather, it indicates growth off the low base set earlier in the year. Growth has not yet been enough to recoup previous loses, but some progress is being made".View the Time Series Data Main Indicies Regional Results Doug Steel Senior Economist, BNZ ProgressSeptember’s Performance of Manufacturing Index (PMI) took a step in the right direction. It lifted to 54.0 from 51.0 in August. Movement down COVID alert levels no doubt helped in the month, after growth nearly stalled amid August’s tighter restrictions.Read more Some BeliefEmployment was a heartening feature of September’s PMI. To be sure, the lift to 51.6 from 49.2 in August was not particularly large but it is the first time the PMI employment index has pushed into positive territory since February.Read more Supply Side ConsiderationsIn stark contrast to new orders, production, and employment pushing back above their respective long-term averages, the PMI inventory and deliveries indicators are subpar.Read more General PickupProgress was quite widespread within the September survey with the unadjusted PMI above 50 for nearly all major industries (the exception being the catch all ‘other’ category).Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesSep2019May2020Jun2020Jul2020Aug2020Sep2020 BNZ - BusinessNZ PMI 48.540.256.359.051.054.0 Production46.239.458.661.751.656.5 Employment 49.639.348.247.149.251.6 New Orders50.640.958.167.354.258.1 Finished Stocks49.341.157.051.750.049.0 Deliveries47.442.358.358.547.449.8 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – September 2020 International ResultsJ.P. Morgan Global Manufacturing PMITM 1 Oct 202052.3 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 BNZ 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