Manufacturing growth in New Zealand has eased but continues to expand, with Otago-Southland at its highest level of activity in the past 11 months.
Nationally, the seasonally adjusted manufacturing index for October was 55.2, down 2.3 points from September but it was the third time in four months activity has been in the 55-point range.
Scores above 50 points show expansion and below, contraction.
BusinessNZ’s executive director for manufacturing Catherine Beard said overall the sector had remained solidly in expansion in almost every month since October 2012.
Otago Southland Employers’ Association chief executive Virginia Nicholls said manufacturing activity in Otago and Southland in October climbed by 1.9 points to 58.6 points from the previous month — the highest level of activity in the past 11 months.
"The construction industry has positive forward orders supplying the residential properties that are being built in Central Otago.
"Metal-product manufacturing has also continued with solid ongoing sales," she said.
The upper North Island was on 62.8 points for October, Otago-Southland 58.6, Central and lower North Island 57.3 and Canterbury Westland 51.2 points.
Mrs Nicholls said Otago-Southland manufacturers were reporting strong employment and deliveries of raw materials at 62.5, production levels and stocks of finished products at 59.4 and new orders were 53.1.
"It’s encouraging to see that food manufacturers are busy with seasonal production for Christmas and Easter," she said.
However, manufacturers supplying packaging to the domestic retail sector and Australia were finding conditions more challenging, she said.
Mrs Beard said the national headline result for the first 10 months of 2016 showed expansion only varying by 2.8 points, with most months seesawing between 55 and 57 points.
"At this stage 2016 is shaping up as better than 2015 for the sector, although the next two months will determine the extent to which the sector can keep momentum going to provide healthy levels of expansion," she said.
