The Bank of New Zealand-Business NZ's seasonally adjusted performance of manufacturing index (PMI) fell 1 point to 52 last month, to be 10 points higher than a year ago. A reading above 50 shows expansion.
The survey reflected the manufacturing sector's steady recovery in the second half of the year as the broader economy clawed back some of the ground lost during the recession, which ended in the second quarter last year.
Bank of NZ economists said the manufacturing sector likely made a positive contribution to fourth quarter growth.
'However, this should be read as a modest recovery off a low base, rather than a position of strength,' said BNZ economist Doug Steel.
Two of the five PMI's sub-indices, production and new orders were expansionary and near two-year highs, but finished products fell back into contraction where finished stocks and employment both remained.
'Sustained new orders and production from here would likely see employment growth by mid-year,' said Steel.
The New Zealand economy grew 0.2 percent in both the second and third quarters of 2009, after enduring five quarters of contraction, the longest recession in more than 30 years.
However, data earlier this month showed unemployment unexpectedly hitting a 10-year high at 7.3 percent as more people looked for work in a shrinking job market. See
(Reporting by Gyles Beckford)
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