Positive and stable is the description for Otago-Southland's manufacturing activity during March, the second-highest in the country and well ahead of the national value.
However, for many exporting manufacturers, the impact of the strength of the New Zealand dollar against that of its second-largest trading partner, Australia, is yet to wash through the data.
Nationally, the BNZ-Business New Zealand manufacturing index stood at 54.5, with northern North Island at 59.8, Otago Southland at 56.5, Canterbury Westland at 54.1 and central North Island at 50.5.
Above 50 is expansion, below 50 contraction.
Otago Southland Employers' Association chief executive John Scandrett said Otago Southland's January index had slipped into mild post-Christmas contraction, before February's index returned ''firmly to expansion mode''.
''These results are followed by a solid March index, at 56.5 points. This appears to provide confirmation that the general commentator views supporting widespread stable manufacturing activity are accurate,'' Mr Scandrett said.
BNZ chief economist Craig Ebert said New Zealand's manufacturing sector remained ''in relatively good heart'', and while it had slowed a touch from February's 56.1, it was still solidly expansive.
Business New Zealand's executive director for manufacturing, Catherine Beard, said although the level of expansion was not as strong as in February, activity was still healthy and positive across most of the sub-indices recorded.
While the sector nationally had now been in expansion for 30 consecutive months, and 60% of comments remained positive, Ms Beard noted the 40% providing negative comments included those concerned about the strength of the New Zealand dollar against its Australian counterpart.
''This is something we'll continue to watch out for in the months ahead,'' she said.
Mr Scandrett said the sub-indices for Otago Southland's March manufacturing were firmly in expansion, specifically the new orders, with finished stock and deliveries survey comments all sitting at the upper end of the positive scale.
There was divided operator sentiment on wood and paper activity levels, where forward orders were in some cases ''patchy'', but consistency across food and beverage performance was being linked to strong seasonal market outcomes, he said.
