WELLINGTON: New Zealand manufacturing activity fell for a fourth straight month in September, although the sector remained in expansion, a survey showed on Thursday.
The Bank of New Zealand-Business NZ's seasonally adjusted performance of manufacturing index (PMI) fell to 50.8 from 52.7 in August and 53.2 in July.
A reading above 50 shows expansion of activity in the sector.
An analyst said weak domestic construction, a strong New Zealand dollar and concern around world economic growth were all weighing on the manufacturing sector.
"We take some solace from the fact that the PMI remains above the 50 mark, even with the headwinds outlined," said Bank of New Zealand economist Doug Steel.
"We remain optimistic for manufacturing as some of these headwinds are expected to at least abate or even become tailwinds next year," he added.
Four of the PMI's five sub-indexes were in expansion, with the deliveries index contracting for the first time since March 2011, with production also at a six month low.
The New Zealand dollar has slipped below $0.8000, but not too far from a 30-year high of $0.8842 struck in early August, putting pressure on exports.
The Reserve Bank of New Zealand has held its cash rate at 2.5 percent for the past four reviews because of uncertain global outlook.
Financial markets pricing implies 29 basis points of rate increases over the next 12 months.
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