Another drop in NZ manufacturing sales
WELLINGTON: New Zealand manufacturing sales fell for a second straight quarter on shrinking volumes of meat and dairy products, tempering expectations for next week’s reading of the wider economy.
The volume of manufacturing sales fell a seasonally adjusted 1.6% in the three months ended September 30, led by a 6.7% decline in meat and dairy product manufacturing, Statistics New Zealand said.
‘‘Most meat and dairy products in New Zealand are exported, and occasionally the timing of exports, price changes and exchange rates can affect manufacturing sales,’’ manufacturing statistics manager Sue Chapman said.
It was the second consecutive fall in manufacturing sales volumes and follows the 1.7% fall in the June 2018 quarter.
The manufacturing survey is the final tranche of secondtier data economists use to firm up their forecasts for thirdquarter gross domestic product. GDP expanded 1% in the June quarter, accelerating from a 0.5% rise in March. The central bank is tipping growth of 0.7% in the September quarter.
ANZ Bank New Zealand had been tipping a small quarterly rebound in manufacturing sales volumes. Given that did not happen, chief economist Sharon Zollner said ‘‘it does represent a down side risk’’ to ANZ’s forecast for a 0.6% expansion in the GDP.
Sales volumes for seven of the 13 industries fell in the September 2018 quarter. The largest decreases were in meat and dairy products while transport equipment, machinery and equipment fell 2.5%. Stats NZ said the only notable increase came from the chemical, polymer and rubber products industry, up 7%.
‘‘The increase in the chemicals industry rebounded on a fall in the June quarter, when an unscheduled outage at the processing plant restricted methanol production,’’ Ms Chapman said.
The value of manufacturing sales rose 2%, versus a 1.8% increase in June. The chemical, polymer, and rubber products industry recorded its largest value rise in the series, up 9.4%. The value component of manufacturing sales also captures price movements.
Unadjusted sales values rose 7.1% to $26.9 billion in the quarter from the same period a year earlier; the volume of sales eased 0.3% after lifting 1.7% in the prior quarter. — BusinessDesk