Petroleum and coal drive fall in manufacturing sales for quarter

The volume of sales for the petroleum and coal product industry fell 5.2 per cent. Photo / Greg Bowker

New Zealand manufacturing sales volumes fell in the second quarter, driven by the continued decline in petroleum and coal, and in meat and dairy.

Total seasonally adjusted sales volumes declined 0.2 per cent in the three months ended June 30, after a 0.3 per cent drop in the first quarter, according to Statistics New Zealand.

The volume of dairy and meat, the two largest exports, fell 0.6 per cent and excluding those two industries, volumes rose 0.6 per cent.

The volume of sales for the petroleum and coal product industry, which don't tend to follow a stable seasonal pattern, fell 5.2 per cent, following two quarters of gains.

Manufacturing is the last significant piece of data that feeds into gross domestic product in the second quarter, which is scheduled for release next week.

The Reserve Bank had projected quarterly GDP growth of 0.8 per cent in its June monetary policy statement. Before yesterday's figures, bank economists had been expecting a weaker number, of between 0.3 per cent and 0.7 per cent.

The central bank revises its forecasts with its latest MPS tomorrow.

Both the volume and value of dairy and meat manufacturing sales declined in the second quarter. In current prices, the total value of manufacturing sales rose 0.4 per cent, as a 1.6 per cent decline in dairy and meat product manufacturing was offset by a 3 per cent gain for transport equipment, machinery and equipment manufacturing.

Excluding dairy and meat, the sales value rose 0.9 per cent.

Beverage and tobacco product manufacturing sales fell 4 per cent by value.

The volume of finished goods stocks, which aren't seasonally adjusted, rose 2.2 per cent from the second quarter last year, led by a 15 per cent rise in stocks of chemicals, polymers, and rubber product manufacturing.