Manufacturing activity slow moving

Manufacturing activity picked up in May but overall was still contracting, a survey shows.

The ANZ Business Performance of Manufacturing Index (PMI) for May recorded activity of 49.3 from 47.9 in April. A reading above 50 points indicates expansion, while a reading below 50 indicates decline.

The index was at 54.1 in May 2004, and 49.6 in the same month in 2003.

"The South Island was the main driver of the overall decline," ANZ said.

Three of the four regions showed contracting manufacturing activity, with the central district bucking the trend with an index reading of 50.1.

Manufacturing activity in Northland was at 49.4, followed by Canterbury/Westland at 48.9 and Otago/Southland at 46.8.

Of the PMI's five component indices, only new orders were expanding, with a reading of 50.7.

The other index readings were: production at 49.7, deliveries at 49.2, finished stocks at 48.5 and employment at 47.2.

Most firms registered a decline in activity for May.