June became the month to record the highest overall level of manufacturing activity in the last nine months, as production increased notably during the mentioned month.

An upward movement was seen in PMI by 3.1 points from May to 46.2, in the BNZ Capital-Business NZ Performance of Manufacturing Index.

If a PMI reading is above 50, it indicates that manufacturing is generally expanding, and if it is below 50, then it indicates a contraction.

In the years 2003-2008, PMI values for June ranged from 45.0 and 62.8, with an average score for the previous June results being 53.4.

According to Business NZ CEO Phil O'Reilly, there are several signs of encouragement in the latest figures.

For the first time since April 2008, the indices measured for new orders - which give an indication of future production - were positive. Furthermore, the production was at its highest level for nearly a year.