Manufacturing activity in Otago-Southland has hit recent lows as its nearest neighbour Canterbury continues to thrive.
Otago-Southland registered at 38.4 points in the June BNZ-BusinessNZ Performance in Manufacturing Index, where above 50 is expansion and below 50 contraction.
Canterbury was 59.8.
The further each figure is away from the mid-point of 50, the greater the expansion or contraction.
Auckland was on 52.3 and central was 48.4.
Otago-Southland Employers Association chief executive John Scandrett said the June PMI survey sentiment, for the most part, centred on a new form of slow winter-based performance.
''The regional 38.3 point outcome is unfortunately at the outer low-end of the contraction seen for a long time.
We really have to go right back to the early months of 2009 and 2012 to see manufacturing at such off-beat levels.
''There are rays of sector sunshine where export activity forms part of the manufacturing framework.''
But for most operators, deliveries and new orders were lean and production output directly reflected the sluggishness witnessed across the surveyed parties, he said.
Overall, New Zealand's PMI was at 55.2, which BusinessNZ executive director for manufacturing Catherine Beard said meant the sector had been in expansion for 33 consecutive months.
''The pick-up in activity levels for June is positive news after three consecutive monthly dips in expansion,'' she said.
The key indicators of production, new orders and employment all showed stronger expansion while the proportion of negative comments for June, at 46.4%, was down slightly from May.
Positive comments in June were varied, with many outlining specific influences to their business, she said.
Negative comments were centred on the reduced dairy payout which, in turn, had led to a fall in rural spending.
Overall, the first six months of 2015 had seen more volatility in overall activity, compared with recent years, although the index continued to show the sector in growth mode, Ms Beard said.
BNZ senior economist Doug Steel said with some confidence indicators fading in recent months, he had wondered how that might affect the PMI, which was more a survey of outcomes rather than expectations or sentiment.
The PMI had slowed in April and May to an index level of about 52 but had posted a ''decent'' bounce-back in June.
''We wouldn't read much into one month's result. But it's encouraging such activity indicators continue to show growth, even though confidence has been dented a bit.''
