N.Z. Manufacturing Sales Increase Most in 7 Years
New Zealand manufacturing sales increased the most in more than seven years in the fourth quarter, led by higher production in the meat industry.
Sales volumes adjusted to remove inflation rose 3.1 percent from the previous three months, when they fell a revised 1.7 percent, Statistics New Zealand said in a statement in Wellington today. That was the biggest rise since the third quarter of 2002, when volumes jumped 4.1 percent.
Eleven of 15 industries recorded gains, adding to signs that New Zealand’s economy gathered strength in the fourth quarter as it recovers from the worst recession in three decades. The Treasury Department last week said the outlook for manufacturing was positive and the currency’s 3.7 percent decline against the U.S. dollar so far this year is providing more confidence for exporters.
Meat and dairy sales advanced 4.6 percent, led by meat. That offset a fall in milk powder, butter and cheese volumes. More than half the meat and dairy production is exported, the statistics agency said.
Excluding those categories, manufacturing climbed 3.6 percent, the agency said. Analysts use the figure excluding meat and dairy as a guide for the contribution of manufacturing to gross domestic product, which is published on March 25.
Production of appliances and other machinery increased after slumping to an 11-year low in the third quarter. Beverage, textile and wood product manufacturing also rose.
Sales when price changes are included advanced 0.7 percent from the third quarter, today’s report showed. Excluding meat and dairy, sales values increased 3.1 percent.
Filed under: money by Forest