Manufacturers are lamenting the low number of orders they are seeing. File pic Photo: 123RF
The country's manufacturing sector is continuing to battle tough economic conditions, recording its ninth consecutive month of contraction, despite an improvement in activity.
The BNZ-Business New Zealand Performance of Manufacturing Index (PMI) rose 3.8 points to 46.7 in November, after falling 2.6 points in the previous month.
A reading below 50 indicated manufacturing was declining, while above 50 indicated expansion.
Thursday's Stats NZ data highlighted the weakening manufacturing sector as a key factor in the overall negative growth numbers.
The PMI showed production (at 43.6) remained "stubbornly low", while new orders and employment showed some improvement, but remained contractionary.
Finished stocks reverted to expansion after a fall in October.
The proportion of negative comments improved in the survey, but manufacturers lamented the lack of demand coming through, evidenced by the contractionary new orders index.
BNZ senior economist Craig Ebert said production was at the heart of the poor run in the PMI over the last nine months.
"Well, it certainly seems to be the latest message of the latest GDP [gross domestic product] accounts and it's also one we've picked up for more than just the last quarter," he said.
"[Production] seems to be dragging the PMI overall down as much it has," Ebert said.