Manufacturing in Otago and Southland dipped from slight expansion to contraction during September, but there were some expectations of an imminent improvement.
In August, Otago and Southland were marginally over the 50-point threshold, indicating expansion, but in September they declined to 49.8 points, or contraction, in line with the national index results.
Nationally, September's BNZ-Business New Zealand performance of manufacturing index stood at 48.2, slightly up on August, but it was the fourth consecutive month of no expansion in the sector.
Otago Southland Employers' Association chief executive John Scandrett said September replicated many of August's index results, giving a "mixed array" of feedback.
Selected food and beverage and metal production manufacturers were expressing mild to moderate confidence, but there were wood/paper and machinery operators who remained less than satisfied with activity levels, he said in a statement.
Business New Zealand's executive director for manufacturing, Catherine Beard, said despite the slight improvement on August, New Zealand's manufacturing sector remained "stubbornly in contraction" during September.
"Although the employment sub-index bounced back from August, the continued drop in new orders to its lowest point in more than three years may have an adverse effect on production numbers in the months ahead," Ms Beard said in a statement.
Mr Scandrett said local manufacturer sentiment revealed many operators were quietly confident a move into expansionary territory was imminent and they were continuing to maintain "a foot on the finished-stocks gas pedal", that September sub-index sitting squarely on 53.8 points.
