Confidence in the manufacturing sector has dropped, with total sales in June falling nearly a third.
The latest survey of business conditions from the New Zealand Manufacturers and Exporters Association shows net confidence fell 20 points to 13 in June, compared with the previous month.
May was the first month this year that the indicator was in positive territory.
Total sales in June fell nearly 30% , compared with the same month last year with both export and domestic sales down.
The current performance index, which combines profitability and cash flow, has fallen to 98, down from 104 in May.
A figure below 100 indicates a contraction.
Chief executive John Walley said both sales and confidence took a knock in May.
"The fact is that people aren't selling what they expected to sell,and certainly year on year we are down significantly. That has impacted on confidence - but confidence is still in positive territory."
