After six months of brisk growth, manufacturing output shrank again in the June quarter.
Statistics New Zealand's survey of manufacturing recorded a 0.7 per cent drop in real sales in the quarter, seasonally adjusted, after increases of 1.4 and 4.4 per cent in the March and December quarters respectively.
Excluding meatworks and dairy factories, which represent about 30 per cent of manufacturing activity, output rose 0.3 per cent, in line with the average quarterly increase in the previous two years.
But that still left it about 18 per cent below its 2005 peak, Goldman Sachs economist Philip Borkin said.
In dollar terms manufacturing sales rose 2.1 per cent to $22.5 billion.