Business NZ PMI drops slightly in June, but remains at healthy level

The BNZ – BusinessNZ Performance of Manufacturing Index (PMI) showed that New Zealand’s manufacturing sector has recorded growth at the levels seen in over the last three months. The seasonally adjusted PMI for June came in at 56.2, which is 2 points lower than that in May. This is similar to the levels of expansion witnessed in April. In all, the sector has continued to be in expansion in all months since October 2012.

BusinessNZ’s executive director for manufacturing Catherine Beard stated that the past four months indicate the sector hovering around a growth range between 56-58, which is still positive and heathy. New orders index continued to grow healthily at 58.7, followed by production at 58. But employment dropped in the month to 49.5. This is first contraction for the first time since November 2016.

"While expansion eased during June, the proportion of positive comments stood at 68.2 percent, compared 69.4 percent in May and 64.7 percent in April", said Catherine Beard.

BNZ senior economist Craig Ebert stated that while it was always going to struggle to match its May’s level of 58.2, June’s 56.2 level was still nicely above average.