Manufacturing sales in New Zealand increased in the first quarter, led by higher dairy prices.

 

Sales rose 0.9% from the previous three months when they gained a revised 1.3%, according to Statistics New Zealand. Dairy prices surged 30% in the quarter. Sales volumes fell 2.7%, reversing a 2.7% gain in the fourth quarter.

 

Sales volumes in particular industries are used by economists as a guide to the contribution of manufacturing to gross domestic product. Ten of 15 industries recorded gains in sales volumes, adding to signs that New Zealand's economy may have gathered strength in the first quarter as it recovers from the worst recession in three decades.

 

Meat and dairy volumes, which make up a quarter of all manufacturing, declined 10% in the quarter. Milk powder, butter and cheese exports fell while overseas sales of meat increased.

 

Excluding meat and dairy, volumes increased for a third quarter, rising 1.3%, reports showed.