MANUFACTURING activity bounced back in August with the strongest level of activity since March, according to the BNZ-BusinessNZ performance in manufacturing index.
Otago-Southland was back into expansionary territory after three consecutive months of contraction.
The index reading for the region was 57.9. Anything above 50 shows expansion and below 50, contraction.
The national seasonally adjusted reading was 56.5, three points up on July.
In the North Island, the northern region showed strong growth with an activity level above 60 for the first time since December 2013.
The central region was still in contraction.
Canterbury-Westland rose 2.4 points to 54.7.
Otago-Southland Employers Association chief executive John Scandrett it was heartening after three months of general contraction in the local manufacturing sector to see the August index reading moving up a gear.
''If anyone is interested to look back over a shoulder, this result places us in a relatively positive comparative position with the 2013 August outcome of 58.8 points.''
The regional August survey had solid performance comment on food and beverage operations and textile and clothing sub-sector outcomes, he said.
Promotional activity had added value and at least one operator had made organisational changes to lift deadline-meeting objectives.
Within the sub-indices, production, finished stocks and deliveries notched up to 60-plus. Surprisingly, the new order benchmark was at the low end at 46.4 points.
''One rather hopes that is not the harbinger of negative forward movement in September and perhaps beyond,'' Mr Scandrett said.
