Manufacturing in South reduced

OVERALL activity in Otago and Southland’s manufacturing sector for January is 46.4 points, the second consecutive month in decline.

A PMI reading above 50 indicates that manufacturing is generally expanding; below 50 that it is declining.

In the regional breakdown by categories, new orders and deliveries of raw materials were the same and production levels, employment levels and new orders were less than 50.

Construction stayed busy in the region, with continuing shortages of skilled trades workers. Machinery and aluminium boat manufacturers also continued to be busy, Otago Southland Employers Association chief executive Virginia Nicholls said.

Orchardists have had a challenging season as there was heavy rain in early January, along with skilled and some unskilled staff shortages.

Students were heading back to study, and there were fewer Recognised Seasonal Employer scheme workers in New Zealand. There were concerns there would not be enough workers to harvest apples and autumn fruit, she said.