Manufacturing sales volumes in the December 2020 quarter rose slightly from the September quarter, after falling earlier in the year due to COVID-19, Stats NZ said today.
When seasonally adjusted, total manufacturing sales volumes rose to $26.8 billion, up 0.5 percent ($142 million) from the September 2020 quarter. Volumes are slightly above levels seen before COVID-19 hit in early 2020.
Volumes are calculated by removing the effect of the price changes from sales values.
“The rise in manufacturing sales in December follows a strong bounce back in the September quarter,” business insights manager Sue Chapman said.
“In the December quarter, there were volume rises in electrical and machinery manufacturing, as well as petrol refining, outweighing small falls in several other industries.”
Dairy and meat product manufacturing values drop
By industry, dairy and meat product manufacturing had the largest value fall, down $288 million (3.2 percent) in the December 2020 quarter, mainly due to falling prices.
After adjusting for price effects, the volume of meat and dairy product manufacturing was relatively steady, down 0.1 percent from the September 2020 quarter.
“Export prices for meat and dairy fell in the December quarter, however the volume of dairy exports rose over the quarter,” Ms Chapman said.
International trade: December 2020 quarter has more on export prices and volumes of goods and commodities.
Transport equipment, machinery, and equipment sales rise
Transport equipment, machinery, and equipment manufacturing had the largest industry rise in sales volumes for the December 2020 quarter, up 4.8 percent ($136 million) from September.
“These rises were predominantly in the electrical and machinery manufacturing sub-industries,” Ms Chapman said.
“Transport equipment manufacturing, such as aircraft parts, repairs and maintenance, remains down with lower levels of international travel.”
Petrol manufacturing sales rise
Petroleum and coal product manufacturing had the second largest sales volume rise of any industry, up 5.2 percent ($132 million) from the September 2020 quarter.
“Petrol refining volumes and values have continued to rise from the slump seen at the beginning of the year, when demand for fuel dropped because of COVID-19 travel restrictions,” Ms Chapman said.
“At the same time, petrol prices at the pump were still down, on average, by 30 cents a litre compared with the December 2019 quarter.”
Wholesale trade values drop
“Wholesale trade sales fell in the December 2020 quarter, after a strong rebound in September from the COVID-impacted June quarter,” Ms Chapman said.
Wholesale trade sales fell 1.7 percent ($503 million) in the December 2020 quarter, following a 17 percent ($4.3 billion) rise in the September 2020 quarter, when adjusted for seasonal effects.
Grocery wholesaling drives quarterly fall in wholesale trade
The fall in wholesale trade sales in the December 2020 quarter was driven by the grocery, liquor, and tobacco industry, in part reflecting lower kiwifruit exports, while grocery sales were relatively flat.
Grocery, liquor, and tobacco wholesale sales fell 3.8 percent ($358 million) in the December 2020 quarter, following a 2.0 percent ($187 million) rise in the September 2020 quarter, when adjusted for seasonal effects.
“Kiwifruit exports had a strong peak earlier in the year, so the December quarterly fall reflected a change in the timing of exports across the season, rather than a fall in annual exports,” Ms Chapman said.
“There was also a lower than usual quarterly increase in supermarket spending in December after reaching a peak in the September quarter.”
Wholesale values up from December 2019 quarter
In actual terms, the total value of wholesale trade sales were up 2.7 percent in the December 2020 quarter, when compared with the same time last year.
“Wholesale trade sales picked up in the second half of 2020, making up for reduced sales earlier in the year,” Ms Chapman said.
A full year comparison shows that in the year 2020, wholesale trade sales were $111.9 billion, up slightly from $111.7 billion in the 2019 year, despite the impact of COVID-19.
