Manufacturing data for Otago Southland reveals thewallowing sector has at least returned to an even keel, but still lags behind two of the other three regions around the country.
While the rebuilding work in Canterbury continues to be stubbornly slow in fully getting under way, Canterbury heads the manufacturing regions for expansion, but Otago Southland could be assisting more.
The latest BNZ-Business New Zealand performance of manufacturing index for May set the seasonally adjusted national reading for May up 7.5 at 55.7, led by new orders and production.
Readings above 50 indicate expansion and below 50 contraction.
The Northern region at 58.8 had rebounded strongly from April's result to its highest value since November 2010, but conversely the North Island's central region at 44.5 dropped to its lowest result since the end of last year.
The Canterbury Westland region at 61.3 had picked up strongly on the back of strong sales and business building better momentum, while the Otago Southland region at 50 had recovered to the no change mark, following three consecutive months in decline.
Chief executive of the Otago Southland Employers Association John Scandrett said the 50 level for Otago Southland represented the "break-even threshold" at which contraction moves on to the rim of expansionary movement - and should be linked closer to the Canterbury rebuild.
He said retention measures being implemented for the Otago Southland workforce, and with the connected expansion of manufacturing here, together could assist in supplying a wide range of much-needed products for the Canterbury rebuild.
"If this is handled well, we will surely see our manufacturing base advance in a positive fashion and in a manner that should offer long-term benefits to Otago and Southland," he said in a statement yesterday.
However, he cautioned that while across the Otago Southland sub-indices, new orders and finished stock levels were tracking "in a relatively positive manner", the deliveries readings were still falling short of desired levels, suggesting product sell-through remained "in stall mode to an extent".
