14 Aug 2008

Manufacturing activity continues to contract

12:35 pm on 14 August 2008

The latest survey indicates manufacturing activity continued to contract in July, though it's picked up from a two-and-a-half year low recorded the previous month.

The Bank of New Zealand - Business NZ Performance of Manufacturing Index stood at a seasonally adjusted 48.8, similar to the result for May.

A depreciating New Zealand dollar is expected to help manufacturers compete overseas, though rising costs and lacklustre local demand are weighing on firms.

On the sub-indices, new orders and employment continued to contract.

A reading below 50 indicates manufacturing activity is contracting, while above 50 signals expansion.