Positive pressure – PMI 11 Jun 2021 58.6May+0.3Monthly Changeexpandingfaster rate 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 Craig Ebert Senior Economist, BNZ PMINew 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 inventoryThis 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 reboundAs 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 TableThe results are seasonally adjusted. National IndiciesMay2020Jan2021Feb2021Mar2021Apr2021May2021 BNZ - BusinessNZ PMI 41.557.454.363.658.358.6 Production41.459.658.366.464.265.3 Employment 40.256.250.253.652.251.5 New Orders42.361.357.772.161.063.7 Finished Stocks42.752.851.355.054.752.4 Deliveries43.149.048.663.152.653.5 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – May 2021 International ResultsJ.P. Morgan Global Manufacturing PMITM 2 Jun 202156.0 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