A survey shows manufacturing activity continued to shrink for the fifth consecutive month in September, marking the longest period of contraction since 2002.
The Bank of New Zealand - Business New Zealand performance of manufacturing index shows the economic squeeze has now hit the sector for five months in a row.
The index stood at 47 points in September, up 1.3 points from July. Any reading below 50 indicates manufacturing is contracting.
The survey shows production fell more slowly but new orders fell by more than the month before. Employment intentions dropped for a second consecutive month.
Senior markets economist at the Bank of New Zealand, Craig Ebert, says the falling New Zealand dollar, commodity prices and shipping costs should deliver some relief to the sector.
Wood and paper as well as the food, beverage and tobacco sector showed an expansion in activity for September.
