Manufacturing still in good heart

John Scandrett.
John Scandrett.
The country's manufacturing sector repeated its expansionary gains of 2013 in 2014 and the outlook for the year ahead is buoyant.

Otago Southland, which had a strong showing throughout 2014, finished December at 66 points, well ahead of Canterbury Westland on 60, northern North Island on 56.9 and central North Island on 49.3 - the national average being 57.7 for December.

The BNZ-Business New Zealand performance of manufacturing index, released yesterday, said manufacturing nationally had been in expansion for 27 consecutive months. Points above 50 represent expansion, and below 50 contraction.

The index found the manufacturing sector averaged 56 points for both 2013 and 2014.

BNZ economist Doug Steel, said New Zealand's economic expansion was in ''good heart'', business confidence was above average and activity growth and new orders were buoyant.

''We estimate the economy grew 3.5% through 2014 and anticipate 3.2% [growth] through 2015,'' he said.

There was nothing in the manufacturing index, nor this week's NZIER quarterly survey of business opinion, to alter his view on those growth projections, he said.

Otago Southland Employers' Association chief executive John Scandrett said the provinces' December result had expanded further on the gains made in previous months.

The build-up towards year-end seasonal demand was ''clearly evident'' in textile and clothing, wood and paper and food and beverage sectors, the only marginally negative comments were from selected operators in the metal and machinery industries.

Business New Zealand's executive director for manufacturing, Catherine Beard, said 2014 was ''another good year'' for the manufacturing sector.

''At the very least, the sector has remained in a position of healthy growth, with comments from respondents typically focused on ongoing and steady demand, both within New Zealand and offshore,'' she said.

simon.hartley@odt.co.nz

Add a Comment