Manufacturing in Otago-Southland bounced back significantly in August to lead New Zealand in activity.
The BNZ-BusinessNZ Performance in Manufacturing Index, released yesterday, had New Zealand manufacturing activity rising to 55 points, seasonally adjusted. This was 1.3 points higher than July and close to the level of activity experienced in June.
The regional results showed Otago-Southland at 64.6, Canterbury-Westland on 54.6, central on 54.4 and northern on 52.6.
Regional results were not seasonally adjusted.
Otago-Southland Employers Association chief executive John Scandrett was overseas yesterday and unable to comment.
ManufacturingNZ executive director Catherine Beard said several positive and negative factors were in play for manufacturers.
The proportion of positive comments slipped slightly from 60.8% in July to 57.2% in August.
However, export growth due to the fall in value of the New Zealand dollar remained a key comment in ensuring comments were more positive than negative.
On the flip-side, manufacturers noted the adverse economic news offshore, which was causing a drop in new orders for some.
''Domestically, the dairy downturn continues to be felt.''
On balance, the sector remained in good heart, although many manufacturers would be keeping a watch on how international developments unfolded over the next few months, she said.
BNZ senior economist Doug Steel said economic growth was expected to slow over the coming year but the index results suggested there might be more spine to economic activity than some seemed to fear.
