Slow grind – PMI 13 May 2022 51.2April-2.5Monthly Changeexpandingslower rate Catherine Beard Director, Advocacy BusinessNZ View profile New Zealand's manufacturing sector experienced a lower level of expansion during April, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).The seasonally adjusted PMI for April was 51.2 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining). This was 2.5 points lower than March, and the lowest monthly result since August 2021.BusinessNZ's Director, Advocacy Catherine Beard said that after steady expansionary results over recent months, the April result highlighted the fickle nature of what manufacturers are currently experiencing. "In terms of the main sub-indices, New Orders (56.0) continued its positive stance, although Production (49.1) fell back into contraction. Employment (49.8) also contracted after two months of expansion, while Deliveries experienced its first level of contraction since November 2021."Manufacturers were in a more negative mindset during April, with the proportion of negative comments increasing from 64.2% in March to 70.3% in April. While COVID features strongly in discussion, skill/labour shortages and supply chain disruptions are also prevalent.BNZ Senior Economist, Craig Ebert stated that “supply problems certainly featured extensively in respondents’ comments, including inferences that COVID, and related absenteeism, remains a big issue, even with recorded case numbers having peaked back in March. This provides valuable context to the negativity in the PMI’s jobs index."View the Time Series Data Main Indicies Regional Results Craig Ebert Senior Economist, BNZ PMIWhile the Performance of Manufacturing Index (PMI) remained expansive in April, it also had a tinge of struggle about it. For a start, its seasonally adjusted reading, of 51.2, was slower than the 53.7 in posted in March and, in the process, dipped below its long-term norm, of 53.1.Read more Very mixed fortunesWhile the Performance of Manufacturing Index (PMI) remained expansive in April, it also had a tinge of struggle about it. For a start, its seasonally adjusted reading, of 51.2, was slower than the 53.7 in posted in March and, in the process, dipped below its long-term norm, of 53.1.Read more Supply issues remainHaving said this, there was also the strong message that what’s holding manufacturing back, in general, is more about ongoing supply constraints, than a weakening in demand.Read more Global contextWith so much dispiriting press about the world of late, one could be forgiven for thinking the global PMI must be stalling, even contracting. In fact, it printed at 52.2 for April – fractionally above its long-term average, of 51.8. To be sure, it has steadily lost momentum, after peaking at a relatively strong 56.0 in May last year.Read more View full BNZ Manufacturing Snapshot PMI Time Series TableThe results are seasonally adjusted. National IndiciesApr2021Dec2021Jan2022Feb2022Mar2022Apr2022 BNZ - BusinessNZ PMI 58.553.852.253.453.751.2 Production63.756.250.851.550.349.1 Employment 53.852.249.651.852.249.8 New Orders62.857.353.758.359.756.0 Finished Stocks55.253.152.650.353.854.7 Deliveries54.251.453.752.751.249.5 View the Time Series Data BNZ - BusinessNZ PMI Time Series January 2018 – April 2022 International ResultsJ.P. Morgan Global Manufacturing PMITM 2 May 202252.2 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 BNZ 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