Wellington, Aug 7 (IANS): New Zealand manufacturing and export sales were 6.42 percent down in June, continuing a trend that began in May, the New Zealand Manufacturers and Exporters Association (NZMEA) said on Friday.

While better than the 9.13 percent year-on-year drop in May, the result pointed to worsening export figures, Xinhua quoted NZMEA chief executive Dieter Adam as saying.

Export sales last month were down 11.49 percent year on year, which compared with a fall of 7.59 percent in May.

Domestic sales were down 1.35 percent last month, which compared with a drop of 11.2 percent in May.

"Australian and European markets continue to be reported as areas of weakness," Adam said.

The Reserve Bank of New Zealand (RBNZ) cut its official cash rate by 25 basis points last month, the second such cut in six weeks, bringing the official cash rate down to three percent.

"While this did not have a direct downward effect on the currency at the time, it will help solidify the current downward trend," said Adam.

"We encourage the RBNZ to continue its easing stance, provided risks in the housing market are carefully considered."