Manufacturing volumes across the country were up for the quarter to September, but the overall value was down 1.2%, or $290 million, because of a sales decline in meat and dairy products.
The 0.4% rise in the volume of total manufacturing sales, was led by a 5.1% rise in metal product manufacturing, Statistics New Zealand (SNZ) data revealed yesterday.
SNZ business indicators manager Neil Kelly said, ''While meat and dairy manufacturing sales volumes have fallen in recent quarters, manufacturing, excluding meat and dairy, has risen for the last six quarters.''
Underpinning the overall $290 million decline, was a 4.8%, or $383 million fall in the meat and dairy product manufacturing sales.
Since the start of the year, global dairy prices have fallen about 50%, but production of milk so far this season is up about 4% on a year ago.
ASB senior economist Jane Turner said the data weakness was centred on the 1.4% decline in meat and dairy, but excluding them, core manufacturing posted a ''solid'' 0.9% increase.
''We discount the weaker meat and dairy sales number to an extent,'' she said.
Livestock slaughter and dairy production data suggested production actually increased strongly over the quarter.
The weak sales value figure implies there was an increase in stocks over the quarter.
''Demand for dairy remains sluggish in an environment of increased supply. In contrast, demand and prices for beef are very high, which is likely to have driven the increase in slaughter over the quarter,'' she said.
Separate manufacturing data out last month, from the BNZ-BusinessNZ index, showed Otago Southland continuing to lead the country, with five consecutive months of national expansion.
SNZ's Mr Kelly said sales rose for seven of the 12 manufacturing industries for the quarter.
The other main industry movements were transport equipment, machinery and equipment manufacturing, up 3.5%, while petroleum and coal product manufacturing were down 4.5%.
