NZ: Manufacturing sales volumes rose by 1% in the June quarter - Westpac

Michael Gordon, Senior Economist at Westpac notes that New Zealand’s manufacturing sales volumes rose by 1% in the June quarter, after two quarters of declines.

Key Quotes

“There were strong gains in meat and dairy volumes, as well as other food and beverages. However, there were declines in most of the non-food categories, including a reversal of the sharp jump in transport and machinery that had boosted the March quarter.”

“To determine manufacturing’s impact on GDP we need to make an adjustment for changes in stocks, in order to get a measure of production. Our preliminary estimate is that manufacturing production rose by 0.2%, with sales being supported by a rundown in stocks.”

“The manufacturing survey is the last major component for June quarter GDP, which will be released on 21 September. We’ll finalise our forecast in our GDP preview bulletin next Thursday. But as it stands, the risks look balanced.around our forecast of 0.8% growth.”