ON THE RISE

The Bnz-business NZ performance of manufacturing index jumped from 50.8 points in January to 57.7 in February, the highest level since April 2010. The improved overall result was led by: New orders (63.1) Production (61.9) Employment (51.3) Finished stocks (49.0) Deliveries (54.0) Regional results: Northern region 53, up 10 points Central region 61.4 up 15.5 Canterbury/westland 52 unchanged Otago/southland 44.7, lowest since August. to domestic manufacturing.

But that cautious optimism was ‘‘well and truly exceeded’’ with a stunning result of 57.7 on the PMI.

The production index jumped almost 10 points to almost 62. There was also a massive 12.5-point surge in new orders to 63.1 points on the index. That was the biggest monthly gain in the new orders index in the history of the survey dating back a decade.

The key for the year ahead was manufacturing for the construction sector.

‘‘The construction sector is showing a bit more acceleration through January and February, but it is coming off a low base,’’ Steel said. Building consents were rising and when the rebuild in Christchurch picked up ‘‘there is more upside to manufacturing’’.

There was a general rebound for the manufacturing sector showing through, but it was also being buoyed by a good grassgrowing season boosting dairy processing. Food processing accounts for about a third of manufacturing.

But that good season was also holding back meat processing as farmers hold on to stock. So December quarter GDP figures due next week are expected to show a fall in meat processing in that period, with a strong bounce back in the March quarter.

However, some of the high export returns to farmers were flowing through into manufacturing.