Stepping Up – PMI

12 Nov 2021

54.3

October

+2.7

Monthly Change

expanding

previously contracting

View Catherine Beard's profile

Catherine Beard

Director, Advocacy BusinessNZ

View profile

New Zealand's manufacturing sector saw further steps into expansion for October, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for October was 54.3 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.7 points higher than September.

BusinessNZ's Director, Advocacy Catherine Beard said that the increased activity for October was fairly evenly spread across the sub index values.

"The key sub-indices of Production (54.0) and New Orders (53.9) were both in positive territory for the first time since July.  Like the last national lockdown, Deliveries (59.9) led the way towards catching up on activity, although Employment (52.1) fell back to its lowest result since February."

"In addition, the proportion of negative comments from respondents dropped to 55.4% for October, compared with 71% in September and 78% in August."

BNZ Senior Economist, Doug Steel stated that “even though October’s reading is above average, we’d classify it more in the realm of some recovery from a large hit rather than an indication of outright strength."

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Doug Steel's profile

Doug Steel

Senior Economist, BNZ

PMI

The Performance of Manufacturing Index (PMI) lifted to 54.3 in October. This builds on the 51.6 it managed to get to in September, after the extreme weakness of 39.7 during August’s level 4 restrictions. It’s a step in the right direction.
Read more

Regional

By region, Northern saw the strongest unadjusted reading, of 62.5, in October. Again, this looks like some bounce from a period of extreme weakness (remember 28.1 back in August) compared to other regions rather than necessarily portraying a strong level of activity.
Read more

Details

The PMI production index lifted to 54.0 in October. This follows two months in contraction territory, offering a sense that manufacturing output turned the corner in the month.
Read more

Employment

Through all the chop and change over recent months, employment indicators have remained positive. Sure, the PMI employment index eased to 52.1 in October from 54.2 in September, but it remains above its long-term norm.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesOct
2020
Jun
2021
Jul
2021
Aug
2021
Sep
2021
Oct
2021
BNZ - BusinessNZ PMI 51.359.962.439.751.654.3
Production51.962.963.227.149.854.0
Employment 52.056.557.854.154.252.1
New Orders52.562.863.244.054.153.9
Finished Stocks49.256.956.445.950.254.9
Deliveries48.654.655.132.947.959.9

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

July 2016 – October 2021

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Nov 2021

54.3

International PMI