Food, beverage best in sector

The Ai Group performance of manufacturing index rose to 45.6 in February, an increase of 5.4 points from January. The rise indicates a slowdown in the rate of contraction, though the reading remained below 50.

An index reading below 50 indicates a contraction in manufacturing activity. Although February's 45.6 showed improvement, it still signalled that the sector was contracting overall.

The food, beverage and tobacco products sector and the wood and paper products sector were the best-performing parts of manufacturing in February, according to the Ai Group index.

The printing and recorded media sector suffered the sharpest decline in February, as reported by the Ai Group performance of manufacturing index.

The February reading was the best result for the index since August, signalling a meaningful month-on-month improvement, but the overall index level still pointed to contraction.

The Ai Group chief executive, Innes Willox, noted that manufacturing continued to struggle despite low interest rates. The article does not provide detailed causes beyond that observation.

A slowing rate of contraction means activity is declining more slowly than before — February's lift to 45.6 suggests conditions eased compared with January. For investors, it highlights that some manufacturing areas (notably food, beverage & tobacco and wood & paper) are relatively stronger, while others like printing and recorded media remain weak.

The article references the Ai Group performance of manufacturing index and comments from Ai Group chief executive Innes Willox. For the official index release and full details, consult the Ai Group's published reports and releases.