Manufacturing growth rolls on

Manufacturing  has remained solidly in expansion in nearly all months since October 2012, ManufacturingNZ executive director Catherine Beard says.

Releasing the BNZ-BusinessNZ Performance in Manufacturing Index (PMI), Ms Beard said the September reading of 57.7 was 2.5 points up from August and activity in the sector was at the highest level  since January this year.

A reading above 50 indicates manufacturing is generally expanding and below 50 that it is declining.

Otago-Southland Employers Association chief executive Virginia Nicholls said activity in the region increased in September and was 56.7 points, up nearly 8 points from August and at the highest level of activity since December last year.

Production (60.3), employment (55.3), new orders (55.3) and deliveries (57.9) all increased on last month.

As a result, there were less available finished stocks.

"Perishable food manufacturers supplying supermarkets have had a positive month."

Regional wood joiners were having strong sales but there were concerns concerning the availability of skilled staff she said.

Metal product manufacturing was strong from those supplying the building sector.

There were good forward orders for aluminium boat building.

Machinery and equipment manufacturing was positive, with seasonal demand improving.

Manufacturers exporting to Australia were finding the strong exchange rate was continuing to have a negative effect on their sales, Mrs Nicholls said.

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