Otago-Southland manufacturers are leading the way nationally for the fifth consecutive month in the latest BNZ-BusinessNZ performance in manufacturing index.
The unadjusted December reading at 65.6 points - down slightly from November's result of 71 points - should be viewed as presenting a picture of resilience in what were still for most, "choppy economic seas", Otago-Southland Employers Association chief executive John Scandrett said.
"It's great to read the encouraging comments flowing through this survey round and especially where positive participant references are made to the recent identification of new inquiries and new export activities.
"The food and beverage and wood products sectors continue to develop across what again appears to be an expansionary manufacturing landscape, and while some caution should be applied around references to seasonal aspects of the PMI strength, the fact that we're still tracking strongly to lead the national survey outcomes will provide yet another welcome morale boost locally," Mr Scandrett said.
The New Zealand adjusted index was 51.9 in December, up from 46 in November, while over 2011, it averaged 51.5, compared with 53 in 2010. A reading above 50 represents expansion of an industry and below 50 a contraction.
Although it was pleasing to see a return to expansion for December, it had overall been a challenging year for manufacturers, BusinessNZ's executive director for manufacturing, Catherine Beard, said.
Global uncertainty continued to hover over most manufacturers doing business in international markets, while domestic events, both natural and man-made, had contributed to changes in orders and production throughout parts of the year, she said.
The positive bounce-back in December validated the bank's view taken in October and November that the negativity in those months was probably overstated, BNZ senior economist Craig Ebert said.
