KEY POINTS:
Confidence is growing among manufacturers despite higher exchange rates, the latest Canterbury Manufacturers Association survey shows.
A net 15 per cent of manufacturers were optimistic in September, up from 8 per cent in August, which was the first positive result since January 2005.
Chief executive John Walley said confidence could be feeding through from a dip in the dollar's value earlier in the year.
"Maybe people feel that where we are at the moment is a bit of a blip and we're going to go back on the improving trend for exporters of a lower dollar," Walley said.
Overall, annualised sales were up 4.5 per cent on a sample size of $276 million, with a 51 per cent export content.
Activity was strong in several niche export markets, with marine a bright spot.
"Others, particularly furniture manufacturers, are hurting at home competing with imports from low-cost countries, and more broadly export returns are soft on the rise in the dollar," Walley said.
The domestic market was being buoyed by spending on infrastructure and exporters were holding on to volumes.
The performance index (profitability and cashflow) was steady at 95 and the forecast index (investment, sales, profitability and staff) was 100, down from 104 in August. Results less than 100 indicated a contraction.
Business constraints had previously been focused on markets but were now more broadly spread, including people, capital and production capability.
