The seasonally adjusted PMI for October stood at 43.5. This was down 3.2 points from September, and is the lowest level of activity since the survey began in 2002. The sector has also been in decline for six consecutive months, which again is a new record.
A PMI reading below 50 indicates the sector is declining.
Bank of New Zealand markets economist Mark Walton said the manufacturing recession was entrenched and widespread.
Business NZ chief executive Phil O'Reilly said the new low point for activity did not bode well for future results.
"It appears that any gains made via a competitive New Zealand dollar over recent months are being consumed by the downturn in export orders," he said.
Hopes for some type of pre-Christmas pick-up in activity looked to be fading fast, he said.
Production, with an index reading of 43.4, fell back to a level similar to June of this year, while employment, on 42.5, experienced its ninth straight level of contraction.
The northern region, on 43.7, is yet to produce an expansionary result for 2008, while the central region, on 47, has remained in a band of 45-47 for the last five months.
In the South Island, both regions continued to show expansion in October, with the Canterbury/Westland region (54.3) building on its September result.
Lastly, the Otago/Southland region (54.2) produced a similar result to the Canterbury/Westland region.
