Manufacturing falls in South

Manufacturing activity in Otago and Southland slumped to 41.3 points in June from 58.4 points in the same month last year, the latest BNZ-Business NZ performance in manufacturing index results show.

A reading below 50 indicates a decline in activity and above 50 shows an expansion. The New Zealand index fell slightly to 54.3 points from 55 in June last year.

Manufacturing in the region largely remained "in the underperforming arena", Otago-Southland Employers Association chief executive John Scandrett said.

However, there was some positive comment in June providing indications that rural sector spending, particularly around timber products, was beginning to track favourably, and new marketing initiatives were "bearing the desired fruit" across selected food and beverage manufacturing activities, Mr Scandrett said.

He was hopeful the region, through the remainder of the year, would capture its share of the growth starting to emerge in other regions. The index stood stout in June, maintaining its moderately expansionary levels achieved in May, despite the soaring New Zealand dollar, the European debt crisis, and further signs of a domestic slowdown in Australia and the US, the BNZ report said.

Canterbury-Westland dropped slightly from 53.4 points in June last year to 52.1.

 

 

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