Manufacturing boost, led by dairy and meat

The volume of manufacturing sales rose 2 percent in the December quarter from the September quarter, led by a 4 per cent boost in dairy and meat products manufacturing, but the value of those sales fell 0.5 per cent, Statistics NZ says.

“The meat and dairy industry rebounded after a strong fall in the September quarter,” said manufacturing statistics manager Sue Chapman.

“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,” she says.

The figures are adjusted to smooth seasonal variations.

The rise in the December quarter follows a 1.1 per cent drop in volumes in the September quarter, with meat and dairy production dropping 5.9 per cent, while the fall in value in the latest quarter follows a 1.8 per cent increase in the September quarter.

Compared to the December quarter of 2017, volumes were up 0.2 per cent but value was up 3.7 per cent.

Chapman says sales volumes rose for nine of the 13 industries the data series measures with volumes of petroleum and coal products rising 4.1 per cent, up from a 0.2 per cent increase in the September quarter.

The largest decrease was in chemical, polymer and rubber product manufacturing which fell 3.2 per cent after a 7.7 per cent increase in the September quarter and an 8.2 per cent drop in the June quarter.

The manufacturing sales figures are one of the last pieces of data feeding into the December quarter GDP numbers which are due for release on Thursday, March 21.