KEY POINTS:
The manufacturing sector continues to expand, albeit at a slower rate, with a steady shift towards export-driven demand, the latest Business NZ survey shows.
The Performance of Manufacturing Index for November was 55.4 - down 1.2 points on October but above 50, which indicated expansion.
General indicators showed a slow but steady move away from domestic consumer-driven demand in favour of exporting, Business NZ said.
However, 35 per cent of respondents said the continued strength of the dollar was a key constraint on activity last month.
The main indexes had expanded for the second consecutive month in November - the first time this had happened since April and May.
High production levels at 58.7 were identified as the key element behind increased activity, new orders were 57, deliveries were 55.8, finished stock was 53.9 and employment was 50.2 result.
Business NZ chief executive Phil O'Reilly said it was the second month in which indexes had been strong with a lessening need for employment, while previously production increases tended to coincide with a strong need for new employees.
Bruce Goldsworthy of the Employers & Manufacturers Association (Northern) said new orders and production levels in the Auckland and Northern region were strong but employment levels more modest "and despite capacity constraints, solid, non-inflationary productivity gains were being realised".
"But labour capacity constraints are preventing more orders being taken on," Goldsworthy said.
Manufactured exports totalled $29 billion in the year ending October, with the October quarter up 15.7 per cent on last year, he added.
"Manufactured exports - not counting processed meat, dairy, seafood and wood pulp products - have surged past $14 billion a year and account now for 45 per cent of all exports of traded goods."
