Otago-Southland led the country in November as manufacturing
momentum continued into its 14th month of consecutive gains.
New orders led the national sub-index gain and also for Otago
Southland, where significant gains were seen in the South in
wood/paper, food and beverage and textile activities,
according to the BNZ-Business New Zealand performance of
manufacturing index, released yesterday.
Otago Southland Employers' Association chief executive John
Scandrett, said feedback in November from almost all
operators supported continuing buoyancy in the sector, plus,
a lift in the Australian retail market had been positive for
the local packaging industry.
''We're pleased to note that strong manufacturing production,
new orders and delivery outcomes drove the November Otago
Southland manufacturing index to a robust, national-leading
65.7 value points,'' Mr Scandrett said.
An index ranking above 50 denotes expansion and below 50,
contraction, and nationally stood at 56.7 for November;
averaging 56 during 2013.
Otago-Southland was top at 65.7, followed by central North
Island at 64.6 and northern North Island and
Canterbury-Westland at 62.2 and 60, respectively.
Business New Zealand executive director for manufacturing
Catherine Beard said various elements of the November result
shone a positive light on the sector.
''While all the manufacturing sub-sectors were in expansion,
key sectors such as metal product manufacturing are showing
stellar levels of activity, no doubt partly due to the boom
in construction at present,'' she said in a statement
yesterday. Additionally, new orders and production remained
key components towards ongoing expansion in the sector, while
employment levels were showing more consistent and steady
growth, she said. She said respondents had noted the stronger
pre-Christmas rush compared with previous years, which boded
well ''for a convincing end to 2013''.
Mr Scandrett said that overall, the November result produced
improved manufacturing outcomes, compared to September and
October, and it was interesting Otago Southland was tracking
on a similar alignment to the corresponding time last year;
which again led the country on 65, at the time.
He noted machinery and equipment operators reported some
downturn patterns, while it appeared the high global demand
for dairy products was responsible for negative comments on
''pricey'' raw material, for at least one southern food