NZ: Q4 manufacturing sales volumes rebounded by 2.0% - ANZ

Analysts at ANZ note that the New Zealand’s total manufacturing sales volumes rebounded 2.0% q/q in Q4 (seasonally adjusted), following two consecutive declines (-1.1% in Q3 and -1.8% in Q2).

Key Quotes

“Of the 13 manufacturing industries, four experienced a contraction from last quarter.”

“A 4.0% q/q rise in meat and dairy product manufacturing drove the quarterly lift in volumes, suggesting strong milksolids production this season is now working its way through.”

“Looking through the volatile meat and dairy component, growth in “core” manufacturing volumes was weak, down 0.4% q/q (sa). All up, core volumes remain at an elevated level, but are struggling to push higher. In nominal terms, core manufacturing fell 0.3% q/q, suggesting prices lifted modestly.”

“Taken together with today’s Building Work Put in Place Survey, which was stronger than expected, we see balanced risk to our provisional Q4 GDP estimate of 0.6% q/q. We will release a full preview note on our GDP expectations next week.”