The New Zealand economy advanced 0.4 percent on quarter in the three months to June of 2015, up from a 0.2 percent expansion in the first quarter but missing market expectations. While the agricultural sector and mining rebounded, a slowdown in construction and falls in transportation and manufacturing dragged growth down.
Agriculture was up 3.0 percent, due to increased meat and dairy production (the primary sector including agriculture, forestry and fishing shrank 1.1 percent in Q1); mining rose 2.5 percent (-6.3 percent in Q1), due to an increase in oil and gas extraction, partly offset by falls in coal mining and oil exploration; business services increased 2.3 percent (2.1 percent in Q1); rental, hiring, and real estate services expanded 1.1 percent, due to a rise in real estate services (0.4 percent in Q1) and construction increased 0.8 percent (2.2 percent in Q1). In contrast, transport was down 1.8 percent (+2.4 percent in Q1), due to decreases in road transport and transport support services and manufacturing shrank 0.4 percent (-1.1 percent in Q1).
On the expenditure measure of GDP, domestic demand was strong (up 1.3 percent). Household consumption was up 0.9 percent, with increased spending on fruit and vegetables, and big-ticket items including cars and furniture. Business investment also increased (2.2 percent) – but this was offset by falling exports (-1.1 percent)and rising imports (2.3 percent).
Year-on-year, the economy expanded 2.4 percent in the second quarter of 2015, slowing from an upwardly revised 2.7 percent gain in the first three months of the year.
9/17/2015 12:14:44 AM