16 Sep 2009

Dairy exports boost manufacturing sales

8:22 am on 16 September 2009

A lift in exports of dairy products helped bolster the volume of manufacturing sales, though prices fell.

The volume of manufacturing sales rose a seasonally adjusted 1.8% in the three months to June, led by stronger meat and dairy products, and petroleum and industrial chemicals, Statistics New Zealand figures show.

If meat and dairy products had been excluded, volumes would have fallen 2.8%.

The value of seasonally adjusted manufacturing sales fell 4.8%, reflecting lower prices for meat and dairy products.

ASB Bank chief economist Nick Tuffley says the food manufacturing sector has been robust, unlike other parts of the manufacturing sector which continue to struggle under weak demand.

He expects the decline in non-food manufacturing will begin to stabilise, but that the dairy sector's strength will not continue.