Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Economic Activity Flat in March Quarter

The level of economic activity was unchanged in the March 2001 quarter, with GDP recording zero per cent growth, according to information released today by Statistics New Zealand. This follows a 0.4 per cent increase in the December 2000 quarter and a 0.9 per cent increase in the September 2000 quarter. For the year ended March 2001, the economy grew 2.5 per cent, down on the 4.6 per cent growth recorded in the year ended March 2000.

Internal demand was marginally down this quarter, falling by 0.1 per cent. A decline in business and housing investment more than offset increases in both household and government spending. While most of the decline in business investment was in plant, machinery and equipment (down 22.3 per cent), both residential and non-residential building investment also declined. Residential building investment is now 33 per cent lower than in the March 2000 quarter. This fall in investment in fixed assets was partly offset by an increase in inventories (up $570 million). The increases in household expenditure this quarter occurred in most categories, with the largest being used car purchases. A notable exception was overseas spending by New Zealand households, which was down 2.8 per cent for the quarter.

Export volumes were largely propped up by services exports, reflecting the continued high number of overseas tourists visiting New Zealand. Merchandise exports were down 0.4 per cent for the quarter, although up 5.0 per cent for the year. By contrast, imports fell 0.7 per cent for the quarter, but were flat for the year. The fall for this quarter was due to falls in imports of both goods and services. Consistent with the fall-off in investment, there was a notable fall in imports of plant and equipment.

The flat activity in the economy this quarter reflects a balance between growth in the service industries and contraction in the primary and goods producing industries. All service industries except transport recorded growth this quarter. In contrast, activity in primary industries fell 1.1 per cent and goods producing industries fell 2.6 per cent.

There were decreases in activity in fishing, forestry, and mining and quarrying. The downturn in both fishing and forestry was reflected in falling export volumes, while mining and quarrying activity decreased as a result of a fall in oil and gas extraction. Countering these falls slightly was an increase in agricultural production of 0.5 per cent. Annually, value added in the primary group of industries is 2.9 per cent higher than it was for the year ended March 2000, largely a result of an annual increase of 4.5 per cent in agriculture.

In line with falling meat exports, primary food manufacturing fell 2.6 per cent. The other manufacturing industries experienced mixed fortunes this quarter, with five industries recording falls in activity, and four recording increases. Overall, manufacturing, excluding primary food manufacturing, fell by 1.6 per cent. Building and construction activity fell 6.8 per cent this quarter, following a 4.4 per cent drop in the December 2000 quarter, reflecting a drop-off in business investment and housing construction. Activity in this industry has fallen to a level last
experienced in the September 1994 quarter.

The expenditure-based measure of gross domestic product (GDE), released concurrently with the production-based measure, recorded a 0.2 per cent increase for the March 2001 quarter.

The GDP implicit price deflator recorded a 3.6 per cent increase over the year ended March 2001, reflecting the significant depreciation of the New Zealand dollar over this period. This is the largest annual increase recorded since the year ended September 1990. The GDP implicit price deflator is a broad measure of the overall price change for final goods and services produced in New Zealand.

Brian Pink GOVERNMENT STATISTICIAN END


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news