10 May 2012

Manufacturing index falls to six month low

2:08 pm on 10 May 2012

New Zealand's manufacturing sector has declined to its lowest level in six months.

The BNZ-Business New Zealand Performance of Manufacturing index fell to 48 points in April, a drop of 5.8 points from March and its lowest level since November last year.

A reading above 50 shows expansion.

Three of the five main indicators fell, including production, new orders and deliveries while employment and finished stocks expanded.

BNZ economist Doug Steel says the strength of the New Zealand dollar, turmoil in Europe, the outlook for world growth and a slowdown in Australia are factors influencing production.

Mr Steel says the drop in the New Zealand dollar in recent days may have an effect on the sector this month.

He says that despite a fall in demand for products, employers seem to be confident in hiring new staff.