NZ manufacturing sales rise 2.1% in third quarter
New Zealand's manufacturing sector has almost been in continuous expansion since October 2012
New Zealand manufacturing sales activity rose in the third quarter, reflecting a rebound in petroleum and coal products, meat and dairy and chemicals.
The volumes of total manufacturing sales rose 2.1%, seasonally adjusted in the September quarter, after a revised 2.2% gain three months earlier, Statistics New Zealand said. The value of manufacturing sales rose 0.4%, following a 1.8% gain three months earlier. Excluding meat and dairy product manufacturing, sales rose 2.3% in the latest quarter.
New Zealand's manufacturing sector has almost been in continuous expansion since October 2012, based on the Bank of New Zealand-BusinessNZ performance of manufacturing index. Over the longer term, manufacturing has declined as a%age of the economy, from about 26% of gross domestic product 40 years ago to about 13% in 2009, with a rise in services, now the biggest contributor to GDP. Still, more recently the trend for manufacturing sales volumes has been up since reaching a low point in 2013.
"The trend in manufacturing product sales remains fairly robust across most categories," ASB Bank senior economist Jane Turner said.
Ms Turner said the figures reinforce ASB's prediction of a 1% increase in ex-primary manufacturing volumes in its gross domestic product component forecast. ASB is expecting a 0.8% gain in GDP in the third quarter but will finalise its forecast after the release of third-quarter building work data.
Of the 13 manufacturing industries measured, 10 rose and three fell in the latest quarter. Petroleum and coal product manufacturing sales volumes, which are volatile and aren't seasonally adjusted, rose 8.1%, following a 9.5% decline in the second quarter. Meat and dairy manufacturing rose 1.6% and chemical, polymer and rubber products rose 5.5%.
Petroleum and coal product manufacturing also led the gain in the value of manufacturing sales, rising 11% in the latest quarter, while meat and dairy fell 2.3% and chemicals gained 5%.
The volume of finished goods stocks, which isn't seasonally adjusted, rose 5.1% from the same quarter of 2015, mainly due to an increase in meat and dairy products.
(BusinessDesk)
Jonathan Underhill
Tue, 13 Dec 2016
Tue, 13 Dec 2016
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NZ manufacturing sales rise 2.1% in third quarter
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