14 Jul 2016

Manufacturing stays in positive territory

2:08 pm on 14 July 2016

Activity in the manufacturing sector is holding up, with a strong run on new orders.

The BNZ-Business New Zealand Performance of Manufacturing Index rose a seasonally adjusted 0.5 points to 57.7 in June.

A reading above 50 indicates expansion.

The employment indicator made gains, while new orders hit the highest level since February last year.

Business New Zealand's executive director for manufacturing Catherine Beard said the fundamental components of the survey were strong.

"Both production and new orders remained above the 60 point range, while employment experienced its fourth consecutive rise in activity levels," she said.

The sector has been in expansion in almost all months since October 2012.

BNZ Senior Economist, Craig Ebert, said the result was encouraging particularly in the immediate aftermath of the Brexit vote in Great Britain.

"Good economic news comes with a price in FX markets," he said.