Southern production constant

MANUFACTURING activity in Otago and Southland for August was largely unchanged from the previous month, straddling the midpoint of contraction versus expansion.

Points above 50 denote expansion, and below contraction of activities.

Otago Southland Employers’ Association chief executive Virginia Nicholls said overall activity in Otago and Southland’s manufacturing for August was 50.3 points, slightly down on the result for July and generally showing little change for the latest month.

While both stocks of finished products and deliveries of raw materials showed expansion, both being at 56.3, new orders at 43.8 were in contraction, while production stayed even on 50, the BNZBusinessNZ performance of manufacturing index revealed.

‘‘On balance, comments from members were slightly more positive than negative,’’ Mrs Nicholls said.

At Port Otago and South Port in recent weeks there was a mixture of record cargo handling, containers and growth in bulk cargo, including logging, both ports said in their respective full year reports.

‘‘However, inflationary cost pressures are coming through with the increasing costs of diesel, while skilled and unskilled shortages remain a concern,’’ Mrs Nicholls said.

She said the construction industry was still going well, although there are continuing concerns around a shortage of staff and proposed changes around employment legislation.

Nationally, the country’s manufacturing activity grew at a faster pace in August as increased demand from the construction industry underpinned a pickup in production and new orders.