Statistics New Zealand data yesterday showed the volume of all manufacturing sales rose a seasonally adjusted 0.3% for the quarter while the value increased 0.5%.
ASB senior economist Jane Turner said manufacturing sales volumes lifted a "muted 0.3%" for the quarter, which was 0.5% below levels a year ago, due to the weak meat and dairy sales volumes.
"Sales in meat and dairy only fell 0.3% in the third quarter, suggesting a run down in stocks over the quarter as livestock slaughter and dairy production both fell," Mrs Turner said.
She noted the recent dry weather period experienced across the country casts some doubt over further dairy production growth for the rest of the milking season.
SNZ’s manufacturing manager Sue Chapman said higher sales volumes for chemicals and plastics producers had helped lift manufacturing for the September quarterSix of the 13 manufacturing industries experienced sales increases in the September quarter, she said.
"The largest movements were chemical, polymer, and rubber product manufacturing, up 3.7%, and transport equipment, machinery and equipment manufacturing, up 2.8%," Ms Chapman said.
Total sales volumes were flat from a year earlier, while values jumped 8.6% to $25.25billion from September last year, bolstered by the recovery in dairy prices and increased meat prices, BusinessDesk reported. Inventories shrank 6.3% from September 2016.
The BNZ-Business NZ performance of manufacturing index showed the sector was in relatively good heart during those months before the election, and has expanded since October 2012. Since then, the October manufacturing index showed activity shrank that month while remaining at a "solidly expansive level", although the latest business confidence survey has shown growing pessimism in the private sector about the economy’s health, BusinessDesk reported.
