The New Zealand economy advanced 0.4 percent on quarter in the last three months of 2016, slowing from a downwardly revised 0.8 percent growth in the previous period and below market expectations of 0.7 percent. It is the smallest expansion in six quarters, as services slowed and agriculture and manufacturing contracted.
Services was the main driver of GDP growth and rose 0.7 percent (1.1 percent in Q3). Business services went up 1.7 percent (2.6 percent in Q3) due to computer system design and related services and advertising, market research and management services. Retail trade increased 0.6 percent (0.7 percent in Q3); arts, recreation, and other services increased 3.8 percent (2.5 percent in Q3), with repair and maintenance services the largest contributor. In contrast, wholesale (-0.3 percent compared to 1.3 percent in Q3) and transport, postal and warehousing (-0.7 percent compared to 3.7 percent in Q3) contracted.
Agriculture was down 0.8 percent (-2.9 percent in Q3), due to falling milk production and manufacturing fell 1.6 percent (1.2 percent in Q3), due to decreased food, beverage, and tobacco production.
Annual GDP growth for the year ended December 2016 increased to 3.1 percent from 2.5 percent in 2015.
3/15/2017 10:01:25 PM