The manufacturing sector is sinking to new depths, according to the Bank of New Zealand-Business NZ Performance of Manufacturing Index (PMI).
The seasonally adjusted PMI for November stood at 35.4. This was 7.9 points down from October and 21.4 points below last November.
A PMI reading below 50 indicates the sector is declining. This is the seventh consecutive month the sector has been in decline. The index has been compiled since 2002.
The global manufacturing depression had well and truly hit New Zealand, said Business NZ chief executive Phil O'Reilly.
The global PMI is 36.4, meaning New Zealand manufacturing is in line with the trend in other developed economies.
The November result begs the question of just how low overall activity will fall.
"There's no clear indication we have yet reached the lowest point for this cycle," Mr O'Reilly said.
All five seasonal indices that make up the PMI were in contraction, with four recording their lowest-ever results.
Production recorded 29.3, employment 39.9, new orders 35,deliveries of raw materials 37.2 and finished stocks 47.3.
The lower exchange rate and lower interest rates should help manufacturers, particularly those who export.
Bank of New Zealand head of research Stephen Toplis said there was a drop in demand for export product as recession gripped the developed world.
"We remain hopeful that 2010 will be a much better year, as the combined impact of substantial monetary and fiscal easing eventually pushes the economy ahead but for many, between now and then will simply be a fight for survival."
A regional breakdown showed the northern region on 41.6, which was its lowest-ever result, while the central region had an index reading of 43.8.
Canterbury/Westland was 43.4, its second lowest result recorded.
Otago/Southland recorded 51.6, which bucked the trend somewhat with another month of expansion, although this was still down on October's result.
