Otago Southland's manufacturing for July remained flat but in expansion, yet well up on the same period for the past two years.
Metal product manufacturing continued to thrive in the South, with good forward orders for the summer season, including export orders, while wood and paper product manufacturers supplying the construction industry were also positive, Otago Southland Employers Association chief executive Virginia Nicholls said.
``The regional performance manufacturing index for July was 53.7 value points, which is similar to last month, but is a significant improvement on the same month in the preceding two years,'' she said.
Points above 50 reflect expansion and below 50 contraction.
Across the regions, Northern registered a reading of 55.8, down from 57.8, followed by Central at 54.6, falling from 60.5, Canterbury posted a reading of 53.8, up from 52.5, while Otago Southland increased to 53.7 from 53 in June.
New Zealand's manufacturing sector has been expanding since October 2012, buoyed by a construction boom that started in the post-earthquakes Christchurch rebuild and has extended to Auckland's housing market, BusinessDesk reported.
New Zealand's manufacturing activity expanded at a slower pace in July, although the construction sector continued to support industrial production.
The Bank of New Zealand-BusinessNZ performance of manufacturing index fell 1.8 points to a seasonally adjusted 55.8.
BNZ economist Craig Ebert said there was increasing evidence that the rest of the country is joining in the building boom.
"As we've frequently pointed out, the manufacturing sector is being greatly supported by a hefty construction cycle,'' he told BusinessDesk.
Mrs Nicholls said the US election was creating some uncertainty, with sales declining in textile, clothing, footwear and leather manufacturing.
Also, the strength of the New Zealand dollar continued to have a negative effect on some exporters.
"Machinery and equipment manufacturing is steady'' and expected to pick up over the next few months, she said. New orders had improved significantly from last month, which boded well for the near future.
