Otago-Southland Employers Association chief executive John Scandrett said manufacturing activity in Otago and Southland could only be described as "flat", with mainly downbeat comments from those surveyed.
"In the September raw data responses from surveyed parties, half reflect on negative elements being evident in their operating space and the other half effectively saying they are seeing a lift, or a holding pattern, in activity," he said.
In the BNZ Capital-Business New Zealand performance of manufacturing index, a reading above 50 indicates expansion and below 50, a decline.
The Otago-Southland performance was up "marginally" by 2.7 points in September, from 44.7 in August, compared to 48.3 in July.
Nationally, the result was almost unchanged from 49.3 in August to 49.2 in September.
Mr Scandrett said the latest result showed the region "had not yet fully shaken off the impact of the economic slow-down", in spite of having tracked positively from March to June.
"There are pockets where manufacturers are doing well but we need to keep firmly in mind that in other niche areas, companies are falling short on targeted outcomes."
Business New Zealand's executive director for manufacturing, Catherine Beard, said the "flat patch" was mirrored offshore.
"Looking across the Tasman, Australia has also fallen under the 50 mark of no change, with a value of 47.3 in September."
