Slow grind – PMI

13 May 2022

51.2

April

-2.5

Monthly Change

expanding

slower rate

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Catherine Beard

Director, Advocacy BusinessNZ

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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

Manufacturing Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

PMI

While 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.
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Very mixed fortunes

While 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 remain

Having 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.
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Global context

With 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.
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View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesApr
2021
Dec
2021
Jan
2022
Feb
2022
Mar
2022
Apr
2022
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

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
2 May 2022

52.2

International PMI