Activity in the manufacturing sector is flat, reflecting a subdued construction sector.
The BNZ-Business New Zealand Performance of Manufacturing Index fell less than 1 point to a seasonally adjusted 49.4 points in July, the lowest reading for that month in four years.
A reading below 50 indicates the sector is contracting.
New orders and deliveries expanded, while production, finished stocks and employment all declined.
Business New Zealand executive director Catherine Beard says manufacturing relies on consumers buying goods, and the economy has been flat overall.
She says a lot of manufacturers supply into the building sector which has been at a pretty low level for the last four or so years.
Ms Beard says that's likely to change with the Christchurch rebuild, but it's taking some time to get underway.
She says manufacturing activity in Australia has fallen significantly, which means New Zealand is facing less competition from trans-Tasman rivals when selling products outside the region.
