Southland economy gearing up after holiday lull
The Otago/Southland economy looked to be holding steady in February, following reports released by BusinessNZ.
The Performance of Services Index and Performance of Manufacturing Index measure commercial and industrial activity throughout New Zealand regions.
According to the indexes, a score above 50 denotes positive growth while a score below 50 indicates negative growth.
Both sectors recorded positive growth in February, following a topsy-turvy past few months.
The manufacturing sector recorded a score of 52.8, up 10.2 points on January.
Stabicraft chief executive Paul Adams said there had been positive signs of growth amongst manufacturers following the Christmas break.
"It seems like there has been some uplift in the region – my perception was that in the manufacturing sector people are busy.
"Staffing issues are beginning to raise their head again, and when there's growth you typically need more resources and labour."
"From our perspective things seem to be pretty buoyant."
In contrast, the service sector dropped 4.7 points, but remained strong at a total of 59.8.
Otago Southland Employers' Association chief executive Virginia Nicholls said some of the changes were affected by the conclusion of the holiday period.
"Activity in Otago and Southland's manufacturing sector was gained some momentum in February... after manufacturers were adversely affected by the holiday period in December and January.
"The regional breakdown in categories were all positive, with stocks of finished products 59.4, production levels, deliveries of raw materials and employment levels 53.1, however new orders were lack-lustre at 50.
"The services sector is continuing to perform at a high level.
"The categories are all healthy with activity/sales levels at an impressive 69.2, employment levels and orders/new business 57.7, supplier deliveries 54.5 and stocks/inventories at 54.2.
"Tourism operators and the associated cafes and their suppliers are continuing to report positive sales, while the health and community services are back to full capacity after the Christmas shutdown."