KEY POINTS:
The manufacturing sector has suffered a fourth consecutive slip in growth as the sluggish start to the year continues.
The Bank of New Zealand-Business NZ Performance of Manufacturing Index (PMI) showed the seasonally adjusted PMI for February stood at 52.2 - a point lower than January and below the average value of 54.5 since the survey began in 2002. A PMI reading above 50 indicates expansion; anything below indicates a decline.
The latest result was the second lowest February value, behind the same month in 2006 which followed a significant period of contraction for the sector.
Business NZ chief executive Phil O'Reilly said the domestic slowdown mirrored the global manufacturing scene, which was feeling the effect of a subdued economy.
"The negativity amongst New Zealand's manufacturers continues to deepen, with the exchange rate remaining a key obstacle to boosting activity."
He said the key diffusion indices of production and new orders confirmed the downturn in growth, with values for both during the first two months of the year similar to the listless period of activity for 2005-06.
For the first time in eight months, not all the main indices recorded expansion. Jobs contracted for the first time since last June.
New orders remained largely unchanged from the previous month at 54.1, but was nevertheless its lowest level since March 2006.
Production levels remained the same, but finished stocks and deliveries both fell from January.
The two North Island regions, Northern and Central, continued to exhibit a decline. Both stood at 48.9, Central's third fall in a row.
