Radio New Zealand - Te Reo Irirangi o Aotearoa

Manufacturing sales still falling

Updated at 5:21 pm on 10 March 2010

The head of the Manufacturing and Exporters Association says the strong Australian economy is helping New Zealand manufacturers that export there - but others are still feeling the effect of the downturn.

A survey by the association reports sales at the manufacturing firms it surveyed fell 3% to $452 million in January.

Exports, which make up just over a quarter of all sales, fell 32% on the same month the previous year, while domestic sales rose 15%. Staff numbers fell 13% over the year.

The association's chief executive, John Walley, says confidence has brightened after two years in the gloom, but there's still a long way to go until markets return to normal.

Mr Walley says about 50% of what the manufacturing sector exports goes to Australia and between 20% and 30% goes to Europe - still a particularly weak market.

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