Mixed quarter for manufacturing sector

Manufacturing sales volumes rose in the June quarter, but the value of sales fell as a result of lower prices.

Seasonally adjusted, manufacturing volumes rose 1.8 per cent from the March quarter but values were down 4.8 per cent, or $986 million, Statistics New Zealand (SNZ) said today.

The main factor in both the change in volume and value was meat and dairy product manufacturing.

Volumes for that industry rose a seasonally adjusted 7.4 per cent in the three months to June, mainly due to increased dairy exports, while the value of sales dropped 8.9 per cent or $633m.

Prices for dairy products, as measured by the producers price index, fell 19.9 per cent in the June quarter, while prices for meat and meat products fell 3.7 per cent.

The volume of finished meat and dairy products goods stocks, which is not seasonally adjusted, was up 23.1 per cent in the June quarter, compared to a year earlier, SNZ said.

But the value was unchanged at $3.2 billion, with the rise in volume being nullified by price decreases.

The rise in overall manufacturing volume in the latest period followed a flat March quarter and falls totalling 9.3 per cent during 2008, SNZ said.

If meat and dairy product manufacturing was excluded from the June quarter, the total sales volumes would show a fall of 2.8 per cent, while sales values would show a fall of 3.7 per cent.

Sales volumes for paper and paper products rose a seasonally adjusted 8.8 per cent in the three months to June from the March quarter, while the volume of the other good category rose 3.3 per cent.

The volume of manufacturing sales for machinery and equipment fell 7.3 per cent and non-metallic mineral products were down 9.1 per cent.

Sales values for machinery and equipment manufacturing fell 8 per cent or $144m, while basic metal manufacturing, which is not seasonally adjusted, fell 10.9 per cent or $72m.

Sales values for other food manufacturing rose 2.1 per cent or $45m, with printing, publishing and recorded media up 2.4 per cent or $20m.

Stocks of finished goods, which are not seasonally adjusted, were up 3.3 per cent in volume for the June quarter from a year earlier, while stock values, at $8.4b, were up 0.3 per cent or $25m from the June 2008 quarter.

- NZPA