Activity in the manufacturing sector has picked up pace, due to demand from overseas.
The BNZ-Business New Zealand Performance of Manufacturing Index rose two points to 56.2 in June, after declining in the previous month. A reading above 50 indicates the sector is expanding.
The manufacturing sector has been hard hit in recent times, suffering the double blow of a strong New Zealand dollar making local firms less competitive and a slump in global demand in the wake of the global financial crisis.
The subsequent worldwide recovery has helped activity expand for a 10th successive month.
The index shows that production, new orders and employment expanded.
Manufacturing exporters are clearly the most optimistic, bolstered by strong growth in Asia and Australia, but a depressed domestic economy is hurting and firms are worried about lingering weak demand and low orders.
Manufacturing activity is expected to ease back in coming months on signs the global recovery is cooling.