New Zealand Economy Back in Recession

New Zealand's economy contracted by 1% quarter-on-quarter in the September 2024 quarter, following an upwardly revised 1.1% decline in the previous period, worse than the market's expected 0.4% contraction, and bringing the country back to the recession.

The big falls in the June and September quarters were the biggest quarterly drops since late 2021 at the height of the pandemic and lockdowns.

The main downward pressure came from manufacturing (-2.6% vs. +1.3% in Q2), business services (-1.5% vs. -0.7% in Q2), and construction (-2.8% vs. -1.6% in Q2).

However, positive contributions came from rental, hiring, and real estate services (+1.0% vs. -0.1% in Q2) and agriculture, forestry, and fishing (+1.4% vs. +0.3% in Q2).

On an annual basis, GDP fell by 1.5%, following a 0.5% decline in the second quarter.