Nationally, manufacturing was up 2.2 points from May to June, the second highest June result, while Otago and Southland's month-to-month performance led northern, central and Canterbury-Westland regions at 58.4 points, largely unchanged from the previous month, according to the monthly BNZ and Business New Zealand performance of manufacturing index (PMI).
A PMI above 50 indicates expansion and below 50 reflects contraction.
Bank of New Zealand economists say the solid pace of the manufacturing sector pushing forward is important as the rebound in manufacturing production has been a major thrust behind the economic recovery to date.
Otago Southland Employers Association chief executive John Scandrett said the Otago-Southland result revealed consistency in expansion and highlighted several sectors all contributing positively to the survey.
"Through June we have seen positive sector sentiment across food and beverage manufacturing. This [result] is inclusive of meat-industry activity, and also in machinery and equipment-sector segments; suggesting an uplift in dairy-farmer plant replacement focus," Mr Scandrett said yesterday.
The result "displays consistent expansionary sector-strength" when compared with the regions' April and May survey outcomes, and was "considerably improved" when compared to the June 2009 result of 48.8 points, in contraction, he said.
He said it was good news the textile, clothing and footwear manufacturing activity appeared to be "regaining lost ground".
"It's positive to see Otago-Southland expansion in this challenging sector. It is a bonus in a way to be able to note that we again take the national lead position against the other regions," he said.
The northern region for June was up slightly at 51.6, while the results of central, at 53.8 and Canterbury-Westland, at 53.4, were largely unchanged from May.
BNZ economist Doug Steel said there was a sense of growth reorientation going on within the economy towards the manufacturing and primary sectors.
"Encouragingly, more manufacturing growth seemed to be around the corner judging by the general sentiment in the sector," he told NZPA .
However, for many manufacturers domestic trading conditions remained tough, with comments focusing on issues such as low demand and orders as the effects of recession lingered.
Mr Steel said the main reason for optimism had to be an improving world economy, despite the many risks which remained.
Strong growth in Asia, and by association Australia, along with a reasonable exchange rate with the Australian dollar, meant trading conditions in a major manufacturing market had improved markedly.
"So the optimism seems to be largely driven by exports and export expectations," Mr Steel said.
Positive comments for the PMI survey last month largely related to obtaining offshore orders and the return of major customers.
