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Manufacturing activity continued to grow last month, despite a strong New Zealand dollar and rising interest rates, a Business NZ survey shows.
The result was an "ongoing testament to the resilience of some New Zealand manufacturers", Business NZ chief executive Phil O'Reilly said.
His organisation's Performance of Manufacturing Index (PMI) was at a seasonally adjusted 54.2 last month. A reading above 50 indicates manufacturing is generally expanding.
In the previous six months the PMI was above the April level four times, the same level once and below it once.
Despite the positive reading for the country as a whole, unadjusted readings put the whole of the North Island in negative territory last month.
The survey breaks the country down into four areas, with the sample sizes in each of those areas insufficient for the results to be adjusted.
According to the unadjusted numbers, the April reading for the northern area -- covering from the Waikato and Bay of Plenty north -- was only 48.7, the first time it has been below 50 since April 2006.
In the rest of the North Island the reading was 47.7, the first dip under 50 since last July.
Canterbury was down from March but still above the line at 52.5, while Otago also eased but stayed positive at 57.
For the country as a whole the unadjusted PMI -- considered a less accurate indication of activity than the adjusted series -- was only just in positive territory last month at 50.1, its lowest reading in a year.
The proportion of negative comments from manufacturers rose to 69 per cent last month from 62 per cent in March, Business NZ said.
Around 37 per cent of the negative comments specifically mentioned the high NZ dollar, while some manufacturers were unable to expand production due to ongoing staff shortages. Hikes in interest rates were also becoming an issue.
Some companies had still managed to increase offshore orders despite the strong currency.
- NZPA
