North vs South – PMI 15 Oct 2021 51.4September+11.7Monthly Changeexpandingpreviously contracting Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing sector saw an overall return to expansion for September, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for September was 51.4 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 11.7 points higher than August, but still someway off levels of expansion typically seen pre-lockdown.BusinessNZ's executive director for manufacturing Catherine Beard said that while the positive national result for September was encouraging, it masked a few underlying issues."Prior to the lockdown, the PMI averaged close to 60 since the start of 2021, which means expansion has some way to go before getting back to what was seen during the first half of the year. Also, there is currently a clear difference between the two islands with the North Island still in contraction, while the South Island has swiftly returned to levels of expansion seen pre-August.""In addition, the proportion of negative comments from respondents remains high at 71%, although slightly down from the 78% recorded in August."BNZ Senior Economist, Craig Ebert stated that “the rebound the PMI experienced in September was encouraging, although the survey is not without some still‐frayed parts. Credit where it’s due though, as the NZ PMI traced much less of a contraction, and quicker stabilisation, compared to what it went through during the initial outbreak of COVID‐19."View the Time Series Data Main Indicies Regional Results Manufacturing Snapshot Craig Ebert Senior Economist, BNZ PMIThe Performance of Manufacturing Index (PMI) rebounded to an expansive 51.4 in September, from the 39.7 level it dipped to in August. Generally speaking, that’s encouraging – although the survey is not without some still‐frayed parts. Read moreDiverse dynamicsStill, not all in the latest PMI was positive. To be sure, new orders were almost back to “normal” with a reading of 54.3 in September. And the employment index remained well above its long‐term average of 50.6, with a 54.4. Read moreNorth versus SouthThe other reason to be a little guarded about the PMI’s latest index reading is that the clear majority of respondents’ comments this month had a negative skew. These were, unsurprisingly, dominated by references to the COVIDwrought lockdowns, with Auckland’s situation lamented by firms right across the country. Read moreQSBO comparisonAs for last week’s NZIER Quarterly Survey of Business Opinion (QSBO), this showed a relatively resilient tone amongst manufacturers. Production was expanding, and expectations around exports were upbeat. Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesSep2020May2021Jun2021Jul2021Aug2021Sep2021 BNZ - BusinessNZ PMI 53.758.359.862.439.751.4 Production56.664.662.763.927.249.9 Employment 51.452.456.457.754.354.5 New Orders57.363.562.763.244.154.3 Finished Stocks50.153.156.956.445.950.1 Deliveries50.253.654.256.133.147.8 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – September 2021 International ResultsJ.P. Morgan Global Manufacturing PMITM 1 Oct 202154.1 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