13 Oct 2011

Manufacturing sector activity shows further signs of slowing

6:51 pm on 13 October 2011

Activity in the manufacturing sector is showing further signs of slowing.

The BNZ-Business New Zealand Performance of Manufacturing Index, fell 1.9 points to 50.8 in September.

A reading above 50 indicates the sector is expanding.

BNZ economist Doug Steel says the manufacturing sector has been slowly loosing momentum since it reached a peak in May.

He says there are significant head winds facing parts of the manufacturing sector with the strength of the kiwi dollar attracting the most negative comments.

Mr Steel says the weak domestic construction activity also features and while there are signs it's picking up with building consents starting to lift, the actual activity is still very weak.

Mr Steel says maybe the Rugby World Cup distracted a few respondents judging by some of the comments and concern about world growth is starting to filter into some replies by respondents.