The Economic Survey of Manufacturing for the December 2008 quarter has been released. Based on volumes, seasonally adjusted manufacturing sales fell 5.4 percent. This is the fourth consecutive quarterly fall.

This fall is the largest since the series began in 1994. However, Statistics New Zealand has expressed concern about increased volatility in the series during recent quarters and that these should be taken into consideration with regard to the magnitude of the latest fall.

Sales volumes decreased in 12 of the 15 industries examined. The largest decrease was in the meat and dairy product manufacturing industry followed by the petroleum and industrial chemical manufacturing industry. Of the three industries that experienced minor increases in sales volumes, the largest increase was in the machinery and equipment manufacturing industry.

Although sales volumes were down, increased prices in industries such as dairy products, fertilisers and chemicals, and transport equipment kept overall sales values flat this quarter.