Skip to content.
Updated at 7:08 am on 16 November 2012
Business New Zealand says the manufacturing sector is bracing itself for continuing challenges despite a return to confidence for the first time in four months.
The BNZ-Business New Zealand Performance of Manufacturing Index shows activity in the manufacturing sector rose two points to 50.5 in October.
A reading above 50 indicates the sector is expanding.
Business New Zealand executive director of manufacturing Catherine Beard says the sector has come out of the longest consecutive period of contraction since 2009.
She says while there has been an improvement in production and manufacturers are showing more positivity, new orders remain historically low and employment in the sector has declined for five consecutive months.
Ms Beard says the environment will continue to be challenging and many of the negative comments relate to slow demand.
She says consumers need to be in a more confident frame of mind and be prepared to spend more for it to flow through into manufacturing orders.
Ms Beard says what happens in Australia also impacts on New Zealand manufacturing.
She says the stronger the Australian economy, the better it is for New Zealand manufacturers because it's one of New Zealand's top export markets.
Ms Beard says there are some positives in the index with some sectors going strongly with food, beverage and tobacco at 73.3.
Copyright © 2012, Radio New Zealand
Audio is categorised based on the frequency of the programme it was heard in. Click on the headings below to access the programmes. For the most recently published audio, go to the latest audio page.
Streams are in Windows Media format. Mac and Linux users may need to install additional software. Get help with audio
A selection of music interviews, reviews, videos, concerts, sessions, and performances.
Downloads and podcasts are available for selected programmes. Our podcast page has a complete list of feeds.
Help on using online audio: formats, software, podcasts, downloading, and troubleshooting.