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imageWELLINGTON: Manufacturing activity in New Zealand slowed fractionally in December on lower production, but the sector overall remained strongly in expansion territory, a survey showed on Thursday.

The Bank of New Zealand-Business NZ's seasonally adjusted performance of manufacturing index (PMI) was 56.4 points in December from an upwardly revised 57.0 in November.

A reading above 50 indicates an expansion in activity, and below a contraction.

"The PMI results suggest that the manufacturing sector is well and truly participating in the broad economic expansion taking place," said BNZ economist Doug Steel in a statement.

He said the survey pointed to another quarter of growth of more than 1 percent in the fourth quarter of 2013.

The new orders sub index slipped but remained the strongest component, and employment edged up to its highest level in six years, while deliveries of raw materials eased. However, the finished stocks sub-index fell back into contraction for the first time since April.

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