A decrease in meat and dairy production has led an overall drop in manufacturing sales in the June quarter.
The latest numbers released by Statistics NZ this morning show total sales fell 3.4 per cent. This was led by a 10 per cent decrease in meat and dairy product manufacturing.
ANZ senior economist Mark Smith said the figures were expected.
"The full impact of the drought appears to have hit home after drought-related slaughter kept quarter one meat and dairy manufacturing volumes afloat", he said.
Nine of the other 12 manufacturing industries also recorded falls.
The manufacturing sector is expected to make a large negative contribution to quarter two GDP.