New Zealand's economy slowed a little last quarter

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New Zealand economic growth slowed a little in the September quarter, according to data released by Statistics New Zealand (StatsNZ) today.

On a production basis, GDP grew by 0.6% over the quarter, down from the upwardly-revised 1.0% increase reported in the three months to June.

The result was in line with market expectations.

“Construction activity recovered this quarter, unwinding the previous two quarterly falls,” said Gary Dunnet, national accounts senior manager at StatsNZ. “This reflected higher construction-related investment, with investment in infrastructure and residential buildings also reporting strong increases.”

“Service industries, such as health care and residential care, business services, and arts and recreation also contributed to growth.”

That helped to offset declines in utility and dairy production over the quarter.

Source: StatsNZ

From the same quarter a year earlier, GDP grew by 2.7% on a production basis, down marginally on the 2.8% level reported previously.

Over the year, the economy grew by 3% to $NZ278 billion in current price terms.

From an expenditure basis, GDP grew by a faster 0.9% during the quarter, helped by a 0.9% lift in household consumption expenditure, the largest part of the New Zealand economy.

Reflecting strong levels of population growth, per capita GDP grew by a smaller 0.2% over the quarter, leaving it up 0.8% over the year.

The New Zealand dollar and interest rate markets are largely unchanged following the release of the report.

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