Even through the manufacturing sector registered growth last month, the industry is still cautious about the process of economic recovery and feels that the overall economy may be improving.

The overall manufacturing sector showed an improvement compared to the earlier months. These results were also endorsed by BNZ - BusinessNZ Performance of Manufacturing Index. The growth ensured that the index is growing continuously for the last 10 months. This is also the second highest level for June, since the survey was started in the year 2002.

The index for the month of June was reported at 56.2 which is an increase of 2.2 points compared to the month of May. Market experts stress that a rating above 50 reveals that the manufacturing sector is doing well and is expected to do well in the coming time.

Experts feel that even though the recovery in the manufacturing sector is good news for the economy, they are a little worried due to the slow nature of the recovery.

Economic experts also insist that manufacturing plays a vital role in the development of the economy and if it continues to do well, it will have a positive impact on the economy.

The improvement in the global economy coupled with strong Asian growth is also expected to significantly help the economy of New Zeeland.