Otago and Southland's manufacturing sector is teetering on the knife edge of contraction and expansion, dragged down by lacklustre results from production and deliveries.
While the Otago Southland region has steadily declined from 60 in May, to around 55 in June and July and finished at the end of September at 50.7, other regional and the national figures have also languished. Scores above 50 in the manufacturing index denote expansion, and below, contraction.
The chief executive of the Otago Southland Employers' Association, John Scandrett, noted that for September, the Canterbury/Westland index, where a strong performance would have been expected, delivered a national low-end 42.5 point outcome.
Nationally, the index declined for the second consecutive month to 54.3, but compared with previous September results the 2013 value was the highest since 2007.
Business New Zealand's executive director for manufacturing, Catherine Beard, said while the September expansion dip was not ideal, the sector remained in a ''solid position''.
''Manufacturing activity has now been in expansion for 10 consecutive months, with 2013 remaining on track to be one of the best years for the sector in some time,'' she said.
Residential building activity throughout the country was one of the drivers, she said.
Mr Scandrett said the September sub-indices of new orders and finished stock indicators were tracking positively, but disappointingly, while the production and deliveries yardsticks did not hit the 50-point barrier.
''Those sub-indices have held back the September outcome, and may possibly impact negatively on next month's performance, especially the production indice,'' he said.
He noted ''mixed reactions'' from wood and paper products operators, who saw volatile market conditions, negative feedback on food and beverage results, but also reports of ''robust seasonal factors'' lifting textile and machinery performances.
