The Otago-Southland regional economy has plenty to cheer about in the latest BNZ-BusinessNZ performance in manufacturing index results, leading the rest of the country with 60.1 points last month.
A reading above 50 indicates an economy in expansion and below 50 in contraction.
"We are delighted to see continuing strong regional manufacturing activity and particularly that, for the second month in a row, the Otago-Southland index at 60.1 points again leads the national results," Otago-Southland Employers Association chief executive John Scandrett said.
"This shows that locally we have manufacturing activity outcomes that are sitting with a buoyant expansionary mode."
The results were encouraging when compared with the northern region's 47.4-point result, he said.
Central was on 53.2 points and Canterbury-Westland had 57.4.
The national seasonally adjusted index for September was 50.8, down from 52.7 in August - the average result for the first nine months of the year.
The overall result for September, showing minor expansion, almost paralleled the views of respondents being evenly split in their outlook.
On the negative side, comments received tended to focus on a lack of both domestic and offshore orders. Positive comments were spread among various influences, with no single issue dominating.
Mr Scandrett said that in Otago and Southland, the continuing growth appeared to centre on packaging and specialist food and beverages.
For the first time, the region was seeing direct survey references to positive activity levels and increased ordering associated with the Rugby World Cup.
Additional local comment of a favourable nature was seen around boatbuilding and selected wood product manufacturing groups.
Connected to those activities, it was clear that recent exchange rate gains had had an effect.
Despite the overall positive results, there had been some negative feedback where plastic extrusion and biotechnology activities had been forced to face the import-related currency hurdles, he said.
"Exporters have their day when weakness in the kiwi prevails, but then we see raw material importation expenses climb and those exposed manufacturers take a hit."
