16 Feb 2012

January manufacturing well down

6:43 pm on 16 February 2012

New Zealand manufacturing performance fell in January to its third lowest result for that month in 10 years.

The BNZ-BusinessNZ PMI dropped 1.1 points to 50.5, compared to 51.6 in December. A result over 50 means growth.

Food, beverage and tobacco stayed strong, reporting 65.4 points, while manufacturing and equipment declined to 43.9.

BNZ economist Doug Steel says while some sectors such as petrol and machinery are struggling from a high kiwi dollar and tough economy, others are improving.

He says by industry the food processing sector stands out as a top performer which has a lot to do with this season's good grass growing conditions and the much improved produce flow that comes on the back of that.

Mr Steel also says the construction sector is growing in Auckland as work from Christchurch moves north.