New Zealand manufacturing activity has expanded for a 16th straight month, suggesting the relatively strong kiwi dollar hasn't been enough to dent activity.
The BNZ-BusinessNZ seasonally adjusted performance of manufacturing index slipped to 56.2 in January from 56.4 in December.
The PMI was at 55 in January 2013. A reading above 50 indicates expansion in the sector.
New orders eased to 60.2 from 61.4 in December, having held above 60 in six of the past seven months. Production rose to 59.5 from 57.2.
The strength of the New Zealand dollar against its Australian counterpart is expected to be a key theme for earnings season as it erodes the value of sales across the Tasman.
Still, while respondents to the PMI survey noted the high kiwi as a negative influence, "others commented that Australia was a source of improvement and some even noted outright strength," said Bank of New Zealand economist Doug Steel.
"The strong positive momentum from last year has continued," Mr Steel said.
"Manufacturing growth continues despite the general strength of the New Zealand dollar."
A major offsetting factor to the strong currency has been an upswing in domestic investment including rapid construction growth, he said.
"Another is a big increase in agriculture income courtesy of a 40-year high in the terms of trade and the increased purchasing power for investment and consumption that the country enjoys as a result."
The Northern region's activity reading slowed to 53.1 in January from 60.1, while Canterbury/Westland returned to expansion at 53 from 49.9.
Otago-Southland fell back to 56.4 from 58.3 and Central remained in contraction at 48.8.
