Manufacturing across the country has been in expansion mode
for 22 consecutive months now - but Otago-Southland has just
booked a third consecutive month of contraction.
Otago Southland Employers' Association chief executive John
Scandrett said the ''overall picture'' of Otago-Southland's
three-month contraction was based on several negative
Some local operators were continuing to face foreign exchange
difficulties, there were the effects of the global mining
slowdown and also slower than usual winter season sales. A
reading above 50 denotes expansion, and below, contraction.
Nationally, the BNZ Business New Zealand seasonally adjusted
performance of manufacturing index fell to 53 for July from
53.3 in June, but Otago was down to 45, the lowest of the
four regions, while Northern and Canterbury Westland were
both still in expansion.
Mr Scandrett said, ''As in recent months, production is
flat-lining at realistic levels but the associated, and now
needed, new order trending patterns are not being seen,'' he
said of Otago-Southland.
However, amid the flat July result there were positives and
some upbeat comments from the food and beverage, textile and
''This feedback has covered references to export market
steadiness, to selected successful promotional strategies and
to a welcome dip in dairy product raw material prices, Mr
Bank of New Zealand senior economist Doug Steel said the
country's manufacturing sector had proved resilient in the
face of a strong New Zealand dollar, which eroded the value
of overseas sales, BusinessDesk reported.
''Those headwinds have receded as the kiwi has come off its
highs and manufacturers are also likely to benefit from local
sales into the construction industry,'' he said.
Nationally, all five sub-indexes were in expansion.
New orders rose to 55 from 52.2 in June while production fell
1.9 points to 54, the lowest level since March last year.
Employment fell 1.4 points to 51.3.