Soldering on – PMI

17 Jun 2022

52.9

May

+1.7

Monthly Change

expanding

faster rate

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Catherine Beard

Director, Advocacy BusinessNZ

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New Zealand's manufacturing sector remained under its long-term average level of activity for May, according to the latest BNZ - BusinessNZ Performance of Manufacturing Index (PMI).

The seasonally adjusted PMI for May was 52.9 (a PMI reading above 50.0 indicates that manufacturing is generally expanding; below 50.0 that it is declining).  While this was 1.7 points higher than April, it was still below the long-term average of 53.1 for the survey.

BusinessNZ's Director, Advocacy Catherine Beard said that the pick-up in activity for May continued the recent trend of results where activity remains within a relatively narrow band of expansion.     

"While both Production (52.8) and Delivery of Raw Materials (55.4) both managed to return to expansion for May, the other key sub-index of New Orders (53.0) recorded its lowest level of activity since the August lockdown in 2021. Overall, any sustained move towards historical levels of expansion requires a healthy level of new orders, which has averaged 55.0 since the survey began."

Manufacturers continue to have a more negative mindset during May, with the proportion of negative comments at 72.7%, compared with 70.3 in April and 64.2% in March.  While COVID and related issues remain a key influence, skill/labour shortages are also regularly mentioned.

BNZ Senior Economist, Craig Ebert stated that “The net result of the sub-index values was the inference that excess demand alleviated during May. New orders are perhaps the cleanest representation of demand, while deliveries speak more to the supply side. To the extent excess demand is abating, so too will be core inflation pressure".

View the Time Series Data


Main Indicies

Regional Results

Manufacturing Landscape
View Craig Ebert's profile

Craig Ebert

Senior Economist, BNZ

The PMI

The Performance of Manufacturing Index (PMI) was a little more expansive in May, and not quite as varied in its details.
Read more

Diminishing excess demand?

The net result of the above-mentioned was the inference that excess demand alleviated during May. New orders are perhaps the cleanest representation of demand, while deliveries speak more to the supply side.
Read more

Less varied

In terms of the lessened variation in the PMI we can note that in April the spread across industries traversed 29.0 to 95.0 whereas May’s range was 33.8 to 67.5, with food & beverage and metal-based manufacturers among the strongest.
Read more

A bounce

While the NZ PMI has kept its head above water since the Delta shock of August 2021, manufacturing activity as measured in the GDP accounts has been through some big ups and downs.
Read more

View full BNZ Manufacturing Snapshot

PMI Time Series Table

The results are seasonally adjusted.

National IndiciesMay
2021
Jan
2022
Feb
2022
Mar
2022
Apr
2022
May
2022
BNZ - BusinessNZ PMI 58.352.253.453.651.252.9
Production63.550.851.550.449.452.8
Employment 52.049.651.852.249.853.0
New Orders64.553.858.158.955.253.0
Finished Stocks52.653.250.053.354.053.1
Deliveries52.753.852.851.449.755.4

View the Time Series Data

BNZ - BusinessNZ PMI Time Series

January 2018 – May 2022

PMI Time Series Graph

International Results

J.P. Morgan Global Manufacturing PMITM
1 Jun 2022

52.4

International PMI