Manufacturing in Otago-Southland continues to lead the country, again helping underpin five consecutive months of national expansion.
Nationally, the BNZ-Business New Zealand manufacturing index rose 0.8 points to 59.3, the highest result for any month during the past 15 months. Index readings above 50 show activity expansion, while below 50 is contraction.
Chief executive of the Otago Southland Employers' Association, John Scandrett, said Otago-Southland's move up from 65.4 points in September to 70 for October reflected a continuation of recent expansionary movements.
''Last month, when the raw materials delivery sub-index was sitting at a particularly high 75-point reading, we predicted manufacturing strength would in all probability advance further,'' Mr Scandrett said.
Business New Zealand's executive director for manufacturing, Catherine Beard, said a run of steady and ongoing increases in activity, following the 2014 low in May, had led to the survey being just below the 60-point mark for expansion.
Ms Beard said while all the indices were in expansion, the fact employment was at its highest level since the survey began in 2002, provided another boost for the sector, as did the increase to 68% of positive comments from manufacturers.
''This all bodes well for a healthy end to 2014,'' she said.
BNZ senior economist Doug Steel said New Zealand's labour market continued to strengthen with annual employment growth of 3.2%, and the unemployment rate falling in the year to September.
''The manufacturing index results suggest more improvement is likely in the final quarter of 2014,'' he said.
Mr Scandrett said four of the five Otago-Southland index categories delivered more than 70-point outcomes and sentiment on activity levels in all manufacturing sectors was anchored around the overall positive performances seen, The flow of positive comments came from the cost readjustment of selected dairy-based raw materials, a wider availability of some meat byproducts and successful seasonal promotional work, he said.
''Food and beverage, selected textile and most metal product manufacturers have reported positively on activity levels,'' Mr Scandrett said.
The North Island's northern region climbed to 60.2 points and its central region rose to 56.6. Canterbury-Westland rose almost 6 points to 61.6, compared with Otago-Southland's gain to 70.6.
