Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


NZ first quarter manufacturing sales volumes rose 0.5%

NZ first quarter manufacturing sales volumes rose 0.5%

By Tina Morrison

Jun. 10 (BusinessDesk) - New Zealand manufacturing sales volumes rose a seasonally adjusted 0.5 percent in the first quarter, led by gains in chemical and petroleum manufacturing.

Chemical, polymer, and rubber product manufacturing volumes rose 8.5 percent helped by increased production at New Plymouth-based Methanex New Zealand and following a 0.5 percent drop in the previous quarter, Statistics New Zealand said. Petroleum and coal product manufacturing increased 5.8 percent, following a 2.5 percent decline in the previous quarter, reflecting quarterly volatility, the agency said.

Meanwhile, meat and dairy product manufacturing volumes edged up 0.1 percent in the first quarter following a 14 percent jump in the fourth quarter, the agency said. In the latest period, the volume of meat exports rose 6.6 percent while dairy product exports fell 4.3 percent following a post-drought jump in the previous quarter.

Manufacturing sales data is the last key component of gross domestic product. New Zealand GDP expanded 0.9 percent in the fourth quarter, for an annual average 2.7 percent pace. While this week's manufacturing and wholesale trade surveys were softer than some expectations, they weren't weak enough to offset a strong rise in construction which could lead some economists to upgrade their forecasts for first quarter GDP, scheduled for release June 19.

"The building work data has added that upside risk and this one might have eroded it a little bit but net-on-net you have still got some upside risk," said UBS New Zealand senior economist Robin Clements. "This is consistent with a 1 to 2 percent GDP for manufacturing which means some upside risk on my GDP forecast for 1.1 percent."

Data last week showed house building activity grew at its fastest pace in almost 12 years in the first quarter as construction ramped up to rebuild the country’s second-biggest city and fill a housing shortage in Auckland.

Westpac bank also said it may revise up its preliminary forecast for 1.1 percent first quarter GDP growth when it finalises its estimate tomorrow.

"The weight of evidence suggests that March quarter GDP growth is likely to come in higher than our initial forecast of 1.1 percent," Westpac senior economist Michael Gordon said in a note. "Last week's construction figures were massively stronger than expected, more than offsetting this week's wholesale trade and manufacturing surveys, which on the whole were a little softer than we had assumed."

The value of seasonally adjusted sales at current prices was 0.6 percent higher from the previous quarter, Statistics New Zealand said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news