Business NZ manufacturing Purchasing Managers’ Index (PMI) for August, 56.5

  • prior was 53.5, revised from 53.0
  • Strongest level of activity since March
  • Marks two years of expansion
  • New orders up 2.8 points to 58.3
  • Production at the highest level since July 2013
  • Employment up 1.7 points to 53.2 (at highest since May)
  • Deliveries up 2.0 points to 55.
  • Finished stocks 48.5

From the report:

Manufacturing by industry sub-groups were mostly positive during August:

  • Petroleum, coal, chemical & associated product manufacturing (63.5) went back into strong expansion after a period of decline
  • Machinery & equipment manufacturing (52.3) continued to experience expansion, although down on the level seen in July
  • Food, beverage & tobacco manufacturing (66.9) continued to expand at strong clip
  • In contrast, metal product manufacturing (49.2) experienced its first level of contraction since December 2013.

Comment from BNZ (economist Doug Steel):

  • “Today’s PMI points to more production ahead, and suggests it won’t be too long before we see the manufacturing sector bounce back for the Q2 softness”

BusinessNZ’s executive director for manufacturing Catherine Beard:

  • “The rise in August was mainly due to a lift in both production and new orders, while two of the other three sub-indices also showed improvement. In fact, production was at its highest level since July 2013.
  • “The proportion of positive comments from respondents was at their highest level for a number of months (61.2%), which tended to center around steady rise in orders, seasonal activity, and positive results following promotional activity and specific projects being undertaken.