The total value of manufacturing activity in New Zealand slipped a seasonally adjusted 2.8 percent in the first quarter of 2015, Statistics New Zealand said on Tuesday – following the revised 0.6 percent decline in the previous three months.

Excluding meat and dairy product manufacturing, manufacturing sales fell 2.1 percent. Meat and dairy product manufacturing fell 4.6 percent.

The total manufacturing sales value was NZ$23.8 billion in Q1, down 6.8 percent (NZ$1.7 billion) on year for the largest annual fall in five years.

Lower dairy and petroleum prices influenced sales values this quarter. When price changes are removed, the sales volume rose a modest 0.4 percent.

By volume, manufacturing activity dipped 0.3 percent after rising 0.9 percent in the fourth quarter.

The largest falls were in the manufacturing of meat and dairy products, down 1.5 percent, and metal products, down 4.3 percent.

“Meat and dairy has fallen in four of the last five quarters, following a large rise in the December 2013 quarter,” business indicators manager Neil Kelly said. “Without the meat and dairy contribution, the combined sales volume in the remaining 12 industries was unchanged, despite a large 12 percent rise in petroleum and coal products.”

When the effect of price changes is included, the seasonally adjusted sales value fell 2.8 percent (NZ$672 million).

This fall was led by meat and dairy products, down 4.6 percent (NZ$341 million), and petroleum and coal products, down 9.3 percent (NZ$173 million).

The material has been provided by InstaForex Company – www.instaforex.com