KEY POINTS:
The manufacturing sector expansion gathered pace last month despite the impact of a high exchange rate and skill shortages, the latest Business New Zealand survey says.
The seasonally adjusted Performance of Manufacturing Index for August was 55.7, up from 54.6 in July - results above 50 indicated expansion.
Business NZ chief executive Phil O'Reilly said recent results showed activity had been consistent and healthy, with strong growth in both production and new orders helping drive expansion.
"Many manufacturers have been resilient in dealing with the issues of high exchange rates and a lack of skilled staff," O'Reilly said. "While the New Zealand dollar has eased over recent weeks, ongoing decreases would provide further boosts for competitiveness."
All five main indices showed expansion - production 58.9, new orders 58.1, deliveries 55.2, finished stocks 53.8 and employment 50.3. The share of negative comments fell to 54.7 per cent from 64 per cent the previous month.
The dollar was still the biggest issue but fell for the third consecutive month, while employee performance and specialised staff recruitment showed an increase.
Unadjusted activity showed a similar level of expansion in all regions of the country with Canterbury/Westland leading the way on a 59.3 rating.
Performance
* Manufacturing sector continues to expand.
* Growth in production and new orders.
* Resilience to high exchange rate and skill shortage.
