Otago manufacturing - notching up its worst result in 26 months - continues to fare slightly better than the national average, though emerging negative trends indicate there is no end in sight for the tough times.
Local manufacturers are under strain with a lack of orders and rising inventories of finished stock, according to Otago Southland Employers Association chief executive, Duncan Simpson.
"Although we are doing better than the rest of the country, the lack of orders and high levels of finished stocks indicate no immediate relief is in sight," Mr Simpson said.
Readings above 50 for both indices indicate expansion, while below 50 is contraction.
The monthly BNZ Capital and Business New Zealand national performance manufacturing index (PMI) revealed Otago fell from 48.4 in January to 44.5, but remained well above the languishing national average by 6.5.
Nationally, the manufacturing level declined to its lowest level on record, down 3.2 from January to 38 for February"Overall, this represents 10 consecutive months in contraction," according to the report.
Regional activity was reported as weak in most areas, with the central North island area recording its first sub-40 result, at 38.7.
Of the five contributing sub-indices, employment fell to its lowest-ever figure (39.5) both deliveries of raw materials (40.6) and production (33.5) were at their second-lowest levels, new orders (38.3) slipped below sub-40 and finished stocks (49.2) had no change.
The Otago/ Southland region continued to slip further, recording its lowest result since January 2007, while the national result was the worst for the month of February.
Mr Simpson said pressure on employment was already evident in the South.
"It would be a brave man who would say that the last of the bad news is behind us," he said.
The global manufacturing scene improved only slightly, although New Zealand's biggest trading partner, Australia, showed worsening results, hitting a new historic low.
