Dairy and meat in strong shape

The meat and dairy industries led a strong 4.9 per cent rise in seasonally adjusted manufacturing sales for the June quarter.

Meat and dairy product manufacturing industry sales were up 8.8 per cent, or $403 million, over the quarter, due mainly to an increase in volumes, Statistics New Zealand (SNZ) said today.

The total seasonally adjusted increase of $870m coincided with a depreciating New Zealand dollar and an increase of 3.7 per cent in prices received for goods sold by manufacturers.

Total manufacturing sales volumes also increased during the quarter, by 2.4 per cent, or $356m.

Excluding meat and dairy, seasonally adjusted sales for manufacturing increased 2.0 per cent, a similar result to the 1.9 per cent increase for the March 2006 quarter.

With the exception of a slight decline between the September 2004 and March 2005 quarters, the manufacturing sales trend had experienced growth since a turning point in the June 2003 quarter, SNZ said.

Of 15 industries covered, 11 had increases in seasonally adjusted sales for the June quarter.

The second-highest sales increase in dollar value was for the machinery and equipment industry which was up $172m, or 10.7 per cent, while basic metal manufacturing sales rose $64m, or 11 per cent.

Non-metallic mineral product manufacturing fell $32m, or 4.8 per cent, while paper and paper product manufacturing was down $13 m, or 1.9 per cent.

Total seasonally adjusted manufacturing operating income was $18.7b in the June quarter from $17.86b the previous quarter.

It was up 8.2 per cent from the June quarter of 2005, when the seasonally adjusted total was $17.3b.

Actual total sales were $19.2b, up 9.1 per cent on $17.6b in the March quarter. They were up 8.5 per cent on the $17.7b in the June 2005 quarter.

Seasonally adjusted sales at December 1997 quarter prices were $14.9b, 2.4 per cent up on the $14.6b March quarter figure. They were also up on the $14.56b of sales in the June 2005 quarter, but down on the $15.06b for the June 2004 quarter.

- NZPA