NZ manufacturing sales volumes fall in 1Q as meat and dairy post biggest drop in 3 years

Wednesday 8th June 2016

New Zealand manufacturing sales volumes fell in the first quarter, snapping two consecutive quarterly gains, as meat and dairy product manufacturing posted their biggest quarterly declines in more than three years.

Total seasonally adjusted sales volumes dropped 1.2 percent in the three months through March, following a revised 0.8 percent gain in the December quarter and a 3.4 percent gain in the September quarter, according to Statistics New Zealand. Excluding meat and dairy product manufacturing, first quarter sales volumes rose 0.7 percent, the agency said.

Manufacturing volumes for meat and dairy products, the country's two largest export commodity groups, fell 7.8 percent in the first quarter, the biggest drop since the December 2012 quarter when they slid 9.1 percent. Of the 13 manufacturing industries, eight rose in five fell in the quarter, the statistics agency said.

Other manufacturing industries to post drops in sales volumes in the quarter included chemical, polymer, and rubber product manufacturing, down 4.2 percent; non-metallic mineral product manufacturing down 4.1 percent; furniture and other manufacturing down 3.5 percent; and printing down 2 percent.

Gains were led by seafood manufacturing which increased 6.8 percent; and textile, leather, clothing and footwear manufacturing up 6.7 percent. Petroleum and coal product manufacturing, which isn't seasonally adjusted, advanced 5.4 percent.

Elsewhere, fruit, oil, cereal and other food manufacturing gained 2.8 percent; transport equipment, machinery, and equipment manufacturing increased 2.2 percent; wood and paper product manufacturing advanced 1.6 percent; metal product manufacturing rose 0.5 percent; and beverage and tobacco product manufacturing edged up 0.1 percent.

The manufacturing data feeds into estimates for gross domestic product for the first quarter, which is scheduled for release on June 16.

The actual value of manufacturing sales, including price changes, slid 2.6 percent to $24.02 billion in the first quarter, the statistics agency said.

BusinessDesk.co.nz

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