Tight at the top – PMI

16 Jul 2021




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Catherine Beard

Director, Advocacy BusinessNZ

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Expansion in New Zealand's manufacturing sector picked up in June, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for June was 60.7 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  This was 2.1 points higher than May, and the second time it had crossed the 60-point mark in four months.

BusinessNZ's executive director for manufacturing Catherine Beard said that "the two major sub-index values of Production (64.5) and New Orders (63.6) remain firmly in strong expansion mode.  Employment (56.5) also picked up to its highest value since August 2017, while Finished Stocks (57.3) also showed noticeable improvement."

"The recent partial Wellington lockdown saw activity in that region decline, but was more than compensated for by the other regions recording strong expansion."

"Despite the overall pick-up in activity, the proportion of negative comments (53.1%) remained higher than positive ones (46.8%).  Many of the positive comments outlined increased demand, but this is counterbalanced by significant labour shortages and logistics disruptions many manufacturers are now facing."

BNZ Senior Economist, Doug Steel stated that “the overt strength in the PMI comes amid ongoing supply side challenges that the sector faces and clear weakness in the Central region during the month."

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Main Indicies

Regional Results

Manufacturing Landscape
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Doug Steel

Senior Economist, BNZ

Six Months Above Average

The manufacturing sector continues to stride forward.  Firmly in expansion mode all year, the Performance of Manufacturing Index (PMI) accelerated in June to 60.7 from May’s already strong 58.6.  That completes six months of the index being well in excess of its long-term average of 53.2.
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Supply Issues Still Widespread

Finished stocks and deliveries of raw materials increased in June, to 57.3 and 55.0 respectively.  Both components pushed up above their respective historical averages.  At face value, this hints at some progress in these longstanding supply side areas of concern for business.
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Employment Lifts

Manufacturers have reported some success in recruiting more staff.  PMI employment lifted to a very strong 56.5 in June, up from 52.0 in May, to push further above its longterm norm of 50.6.
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View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesJun
BNZ - BusinessNZ PMI 56.554.363.658.358.660.7
New Orders58.357.772.160.963.563.6
Finished Stocks56.251.555.255.053.657.3

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2018 – June 2021

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 Jul 2021


International PMI