KEY POINTS:
Manufacturing in New Zealand picked up pace in May, continuing eight months of growth.
The Business NZ Performance of Manufacturing index for the month was at 56.8, up 2.4 points from April.
A PMI figure above 50 indicates manufacturing is expanding; less than 50 indicates a contraction.
"The result ... shows manufacturing is consolidating after reasonably strong growth over the past eight months," Business NZ said.
The improvement came before the Reserve Bank raised interest rates to 8 per cent last week and before it intervened in the currency this week.
Business NZ said high interest rates were becoming an issue for businesses and some complained about the high New Zealand dollar.
"Inability to expand due to skills shortages, a slowdown in demand and rising costs were also seen as negative factors on business activity."
