Positive pressure – PMI

11 Jun 2021




Monthly Change


faster rate

View Catherine Beard's profile

Catherine Beard

Director, Advocacy BusinessNZ

View profile

New Zealand's manufacturing sector remained at healthy levels of expansion for May, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for May was 58.6 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 0.3 points higher than April.

BusinessNZ's executive director for manufacturing Catherine Beard said that "the two major sub-index values of Production (65.3) and New Orders (63.7) remain the cornerstones of ongoing expansion in the sector.  In contrast, Employment (51.5) continues to slip into lower expansion, while Finished Stocks (52.4) and Deliveries of Raw Materials (53.5) remain above the 50-point mark."

"Globally, manufacturing activity continues to expand at a robust pace, culminating in an 11-year high for May.  However, this has led to upwards pressure on input prices across most countries, including New Zealand, given comments from respondents outlining increased costs of raw materials."

BNZ Senior Economist, Craig Ebert stated that “the PMI readings on Finished Stocks and Deliveries of Raw Materials for May appeared reasonable.  However, they were also still clearly lagging as components in the PMI. If there was any doubt about supply-side factors being a major problem, this was put paid to by respondents’ comments to May’s PMI."

View the Time Series Data

Main Indicies

Regional Results

Manufacturing Snapshot

View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ


New Zealand’s Performance of Manufacturing Index (PMI) maintained a very strong pulse in May. It couldn’t get up close to March’s record high of 63.6 but, at 58.6, it was about as strong as it was in April (58.3).
Read more

Supply issues (still to the fore)

But it’s supply side issues that continue to dictate proceedings. To be sure, the PMI readings on finished stocks (52.4) and deliveries of raw materials (53.5) for May appeared reasonable. However, they were also still clearly lagging as components in the PMI.
Read more

Sales and inventory

This is not to deny that output is increasing. It clearly is for manufacturers, according to the PMI. It’s more the case that production can’t increase enough to fully satisfy now heated levels of demand.
Read more

Global rebound

As for other lenses on the PMI, these tended to reinforce the widespread impressions of momentum, although not without some variation.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesMay
BNZ - BusinessNZ PMI 41.557.454.363.658.358.6
New Orders42.361.357.772.161.063.7
Finished Stocks42.752.851.355.054.752.4

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2018 – May 2021

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Jun 2021


International PMI