The sector posted its fifth consecutive sub-50 result - meaning that manufacturing is in contraction - for the month of September.
However, Otago Southland recorded the best overall regional standing, with its 53.9 result revealing expansion for the first time since figures in May showed evidence of growth.
It is the third consecutive September for which Otago has led the regional standings.
Otago Southland Employers Association chief executive Duncan Simpson played down the result, noting it was a gain off low levels and unemployment was still very tight.
He said while forward orders, especially for Australia, underpinned the September result, a major southern exporter to the US had said it was the worst in forward orders he had seen for about a decade.
Four of the five manufacturing sub-categories recorded their lowest values for the month of December since the survey began in 2002, BNZ chief economist Craig Ebert said yesterday.
Employment recorded its lowest result for the second month in a row at 44.7, production improved slightly on August at 45.5, new orders were at similar levels to July at 48.8, deliveries of raw material contracted to 48.8 and finished stocks remained unchanged at 50.2.
Mr Ebert said while the "impending global recession is a big downer" there were opportunities with the currency falling, commodity and raw material markets cooling and freight costs coming down.
Mr Ebert cautioned commodity-based New Zealand could not escape the the major slowdown in the global economy, but local companies could get some relief and minimise some of the pain from an international recession.
