8 Sep 2015

Manufacturing sales point to slowdown

1:40 pm on 8 September 2015

Manufacturing sales have continued to fall, pointing to a soft quarter for economic growth.

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Photo: 123rf

Official figures show seasonally adjusted sales volumes fell 0.2 percent in the three months to June because of weaker meat, dairy and petroleum prices.

Seasonally adjusted values rose 0.4 percent.

On an annual basis, the value of sales decreased 5 percent, while volumes rose 0.2 percent.

ASB Bank senior economist Chris Tennent-Brown said the latest data indicated there had been only modest economic growth in the last quarter.

Meanwhile, a monthly traffic report has indicated the economy is losing momentum.

The ANZ Truckometer measures heavy and light traffic flows on the country's roads to predict levels of economic activity.

The heavy index, which paints a more immediate picture of the economy's health, fell 0.6 percent last month, while the light traffic index, which gives a six-month lead on the economy, also dropped 0.6 percent.

ANZ Bank senior economist Sharon Zollner said the rest of the year looked weak.