New Zealand GDP Expands More than Expected in Q3

New Zealand economy grew a seasonally adjusted 1 percent from June to September period, up from 0.7 percent expansion reported in the previous three month period driven by gains in agriculture and mining.

The growth was mainly driven by primary industries, which increased 5.8 percent. It was one of the strongest growths in primary industries for the last 15 years as milk production accelerated, oil exploration increased and gas extraction rose. 

The key drivers in the September 2014 quarter were agriculture (up 4.7 percent), and mining (up 8.0 percent). In contrast, forestry and logging was down 4.0 percent.
Manufacturing activity grew by 2 percent led by increases in metal product manufacturing and machinery and equipment manufacturing. Electricity, gas and water services advanced 1.5 percent. In contrast, construction sector decreased by 1.2 percent

Service industries were mixed this quarter. While telecommunications advanced 3.5 percent and retail trade grew 1.7 percent;  transports and business services declined by 2.6 percent and 2 percent respectivelly.

The expenditure measure of GDP rose 1.3 percent in the September 2014 quarter. Household spending was up 1.5 percent, driven by a 4.0 percent increase in durables – including used motor vehicles and furniture. This is the highest quarterly increase in durables since before the global financial crisis. Investment also increased (3.5 percent), mainly due to increased spending on machinery and transport equipment.

Year-on-year, the economy grew 3.2 percent. Figures for the second quarter were revised to show the GDP expanded at a slower 3.2 percent from 3.9 percent initially reported.

GDP growth for the year ended September 2014 was 2.9 percent.

New Zealand GDP Expands More than Expected in Q3

Statistics New Zealand | Carolina Cunha |
12/18/2014 1:05:03 PM