Friday 15th September 2000 |
Text too small? |
Manufacturers have been leading the way in voicing their concerns about easing domestic demand and unfavourable business conditions in New Zealand. So it isn't surprising that manufacturing sales statistics released this week for the June quarter showed a slowdown compared with growth earlier in the year. The slowing in growth is consistent with the NZIER's Quarterly Survey of Business Opinion. Respondents to the June survey reported an easing in output over the June quarter.~TITLE>
Real quarterly growth declines
According to Statistics New Zealand, seasonally adjusted sales in the manufacturing sector increased 0.7% in the June quarter, less than the 1.6% increase in the previous quarter. However, after removing the impact of prices, manufacturing sales declined 0.6% in the June quarter - the first quarterly decline in real sales since the 1998 December quarter. ~TITLE>
Seasonally adjusted manufacturing sales |
Juno quarterly per cent sales Source: Statistics New Zealand, NZIER |
Manufacturing sales |
Annual per cent change Source: Statistics New Zealand, NZIER |
Despite the fall in quarterly manufacturing sales growth, annual growth is still robust. Real manufacturing sales were 5.4% higher in the 2000 June quarter compared with the same quarter in the previous year. Annual growth in real manufacturing sales has been rising more than 4% since September 1999.
Of the 10 manufacturing sectors surveyed, annual growth increased in seven sectors. The only sectors to record a real annual decline in sales were the printing and publishing, non-metallic minerals and other manufacturing. ~TITLE>
Higher prices play a large role
Using nominal figures as an indicator for underlying growth has become less relevant recently because of higher producer prices. Manufacturing activity is no exception to this. ~TITLE>
Manufacturing costs |
Annual per cent change Source: Statistics New Zealand |
With some business confidence surveys showing a recent improvement in manufacturers' outlook for activity, we expect real sales in the manufacturing sector to improve modestly over the year.
- Compiled by Lisa Yee
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