Manufacturing sales volumes have fallen to their lowest level in five years, despite a small rise in meat and dairy product manufacturing.
The Statistics New Zealand (SNZ) data released yesterday showed seasonally adjusted manufacturing sales volumes down 2.3 per cent in the September quarter, following a 1.1 per
cent fall in the June quarter.
Volume was down, but increased prices for meat, fertiliser and other goods led to a rise in seasonally adjusted sales value of 1.3 per cent, or $265 million.
ASB economist Jane Turner said the broad-based nature of the decline in production in the survey suggested unequivocal weakness in the manufacturing sector during the third quarter.
With global demand weakening and the domestic economy coming under even greater strain, non-food manufacturers were likely to continue to struggle, she said. A recovery in dairy production after last season's drought should help sustain food-related manufacturing.
SNZ said the meat and dairy product manufacturing industry was relatively flat during the quarter with a seasonally adjusted sales volume rise of 0.3 per cent.
But the value of meat and dairy product manufacturing sales rose 3 per cent or $178 million, as meat prices rose 10 per cent, even as dairy prices fell 2.5 per cent.
Excluding meat and dairy, manufacturing sales volume was down 3.2 per cent in the September quarter.
Three industries each contributed about a fifth of the decrease - structural, sheet and fabricated metal products; paper and paper products; and machinery and equipment.
Petroleum and industrial chemical manufacturing sales value rose 16 per cent or $135 million in the quarter, while volume was up 3.2 per cent, after a 1 per cent rise the previous quarter.
Transport equipment manufacturing sales value rose 18 per cent, also $135 million, while volumes were up 11 per cent in both the September and June quarters.
The value of machinery and equipment manufacturing sales fell 3.4 per cent or $65 million.
- NZPA
