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

 


Household Spending Fuels Strong Economic Growth


Household Spending Fuels Strong Economic Growth

Economic activity increased 1.5 percent in the September 2003 quarter, following increases of 0.3 and 0.7 percent in the June and March 2003 quarters, respectively, according to Statistics New Zealand. For the year ended September 2003, the economy grew by 3.9 percent. Gross domestic product (GDP) per capita increased 2.1 percent in the September 2003 year, following a 2.7 percent increase in the previous September year.

Growth this quarter was maintained by internal demand, up 3.5 percent. There was a marked lift in household expenditure on consumer durables, up 4.5 percent; and new housing construction, up 4.0 percent, increased for the sixth quarter in a row. There was a further build-up of inventories while business investment in fixed assets also rose, up 2.9 percent.

The external account had a dampening effect on domestic activity. Export volumes fell for the second successive quarter, down 2.0 percent; part of the increase in internal demand was met from imports, which were up 0.8 percent.

The increase in domestic economic activity occurred largely in the goods producing and service industries. Manufacturing activity recovered this quarter, increasing 1.9 percent, following a decline of 2.0 percent in the June 2003 quarter.

Similarly, electricity, gas and water recovered, up 7.0 percent, following the 6.3 percent fall last quarter. Both of these industry groups were affected by last quarter's 'power crisis'.

The increase in business and housing investment was reflected in the continuing strong growth in the construction industry, which was up 4.7 percent for the quarter and is up 16.1 percent for the year ended September 2003.

The lift in household expenditure was also shown in increased activity in most service-based industries, with retail, accommodation and restaurants value added, up 1.4 percent, being a major contributor.

The expenditure-based measure of GDP, released concurrently with the production-based measure, recorded a 1.7 percent increase for the September 2003 quarter when compared with the June 2003 quarter.

Real gross national disposable income (RGNDI), which is a measure of the volume of goods and services New Zealand residents have command over, increased 4.2 percent in the September 2003 year. This exceeds the 3.9 percent growth in GDP. The higher growth in RGNDI resulted from the improvement in the terms of trade, which increased the purchasing power of the disposable income of New Zealand residents.

Brian Pink

Government Statistician

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

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:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news