12 May 2017

Manufacturing sector expands at slower rate

12:52 pm on 12 May 2017

Activity in the manufacturing sector remains solid, but is expanding at a slower rate.

Q-West Boat Builders welding fabricator Grant Loveridge works on a new ferry for the Auckland market.

April's result was the second highest for the manufacturing sector since September last year. Photo: RNZ / Robin Martin

The BNZ - Business New Zealand Performance of Manufacturing Index (PMI) fell 1.2 points in April to 56.8 when compared with March.

A reading above 50 indicates the sector is expanding.

Despite the monthly fall, it represents the second highest result since September last year.

Production, employment and new orders fell last month, while deliveries rose.

Craig Ebert, a senior economist at BNZ, said expansion in the sector remained on track.

"There weren't any significant jags in the main component detail of the PMI for April, leaving them all looking good... overall, April's PMI was another deserving of a big tick," he said.