11 Nov 2016

Encouraging signs for manufacturing sector

11:34 am on 11 November 2016

The manufacturing sector remains firmly in expansion with employment picking up.

Q-West Boat Builders welding fabricator Grant Loveridge works on a new ferry for the Auckland market.

Photo: RNZ / Robin Martin

The BNZ-Business New Zealand Performance of Manufacturing index has fallen 2.3 points to 55.2 in October when compared with the previous month.

But a reading over 50 indicates expansion.

A senior economist at BNZ, Craig Ebert, said the indicator remained above a long-term average.

The employment index rose to the highest level since July to 53.8.

"It was the employment index in October's PMI that seemed to provide the most encouragement," said Mr Ebert.

He said that result gave good signs for the labour market and the economy.