New Zealand manufacturing sales volumes were boosted by chemical and plastics makers in the September quarter, a period when leading indicators showed manufacturers remained optimistic in the run-up to the general election.
Source: 1 NEWS
The volume of all manufacturing sales rose a seasonally adjusted 0.3 per cent in the three months ended September 30, while the value increased 0.5 per cent, Statistics New Zealand said.
Chemical, polymer and rubber product led gains, as manufacturing sales volumes rose 3.7 per cent in the quarter while values advanced 2.6 per cent.
That was followed by transport equipment, machinery and equipment manufacturing sales volumes increasing 2.8 per cent and values gaining 2.5 per cent.
"Over recent years, the underlying supports for core-manufacturing growth have been construction activity and investment demand.
Construction performed well in Q3, after a soft performance over the first half of the year," ASB Bank economists said in a note.
"Further, a strong in lift in transport, machinery and equipment sales (up 7.4 per cent over the past year) indicates strong underlying demand for investment."
The data is the final component before the release of third-quarter gross domestic product figures on December 21.
ASB raised its preliminary forecast for GDP to expand 0.5 per cent for the quarter from a previous projection of 0.4 per cent, saying today's data indicated a "very strong" reading on manufacturing excluding the primary sector.