New Zealand's manufacturing sector increased its output during the month of June quarter; however, it got paid less for that production.

This morning the figures released by Statistics New Zealand show sales volumes in the June quarter increased by 1.8%; the sales value dropped by 4.8% or $986millions. The decrease in sales value appears to be an effect of the high New Zealand dollars.

The major contributor to the increase in volume was a boost in meat and dairy product manufactured industry, which increased by 7.4%.

However; the same was able to maintain the biggest drop in the value of sales; a fall by $633 million.

"Other industries hit by falling sale values were machinery and equipment manufactures - down 8% or $144 million - and basic metal manufacturing, down 10.9% or $72 million. Other industries showed rises in volume of sales during the quarter but were less affected by falls in sale values," said a source.

Paper and paper products increased by 8.8%; and the "other food" category also increased by 3.3%.

In the month of March, the volumes dropped by 9.3% over 2008 and were flat.