NZ manufacturing feels affect of drought

Manufacturing sales volumes in New Zealand dropped by 3.4 per cent in the June quarter. This figure reflects the affect the summer drought had on meat and dairy products.

Fairfax NZ reports that, when meat and dairy are not considered, manufacturing rose slightly and there was a lift in finished goods, which pointed to a positive contribution to GDP.

The figures from Statistics New Zealand showed that there was a 10 per cent fall in meat and dairy product manufacturing in the quarter. This seems to have been caused by the drought.

Without the fall in meat and dairy products, the volume of manufacturing sales increased by just 0.1 per cent. And nine out of the 12 manufacturing sectors suffered falls in the June quarter.

Petroleum and coal product manufacturing fell by 5.2 per cent, while chemicals, polymers and rubber products rose by 6 per cent.

Increases in the manufacturing of wood, paper, metals, chemicals and rubber suggest a boost from the rebuild of Christchurch post- earthquake.