New Zealand Economy Boosted by Services in Q2
The New Zealand economy advanced 0.8 percent on quarter in the second quarter of 2017, gaining steam after an upwardly revised 0.6 percent expansion in the previous and matching expectations. The expansion was boosted by services and manufacturing while construction and mining contracted.
Services were the bright spot behind faster quarterly growth in 2Q, as all service industries combined expanded 1.0 percent after growing 0.5 percent in the first quarter. Three service categories improved markedly in the second quarter, with retail trade and accommodation expanding 2.8 percent (vs 2.0 percent in Q1); transport, postal & warehousing 3.5 percent (vs -1.6 percent); and professional scientific, technical, admin & support 1.1 percent (vs no change in Q1).
9/21/2017 10:33:19 AM
Manufacturing also gained steam, climbing 1.8 percent after a 1.2 percent rise in the March quarter. In contrast, utilities advanced only 0.3 percent after a 2.1 percent rebound in the first quarter. Meanwhile, construction contracted less (-1.1 percent vs -2.1 in Q1).
Finally, mining plunged 5.2 percent (vs a 1.6 percent contraction in 2Q) and agriculture, forestry & mining activity remaining unchanged after expanding 2.8 percent in the previous three months.
Year-on-year, the economy expanded 2.5 percent, matching both the Q1 rate and market expectations.