Service Industry Growth Continues

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Service Industry Growth Continues

Economic activity increased 0.8 percent in the December 2006 quarter, Statistics New Zealand said today.

Continued strength in the services industries was the major contributor to growth, with increases in primary and goods-producing industries also contributing to the overall result. In the year ended December 2006, the economy grew 1.5 percent.

The finance, insurance and business services group, together with the communication industry all contributed strongly to this quarter's 0.9 percent growth in services industries. Wholesale trade industries partly offset this growth, down 1.7 percent in the December 2006 quarter.

Goods producing industries increased 0.4 percent this quarter, following two consecutive quarters of decline. The electricity, gas and water industry and the construction industry increases (up 2.4 and 2.1 percent, respectively), more than offset the continued decline in the manufacturing sector (down 0.6 percent).

The expenditure-based measure of gross domestic product (GDP), released concurrently with the production-based measure, recorded a 1.2 percent increase in the December 2006 quarter. This was driven by a resurgent domestic sector, with total domestic spending recording 2.6 percent growth this quarter. The increase in domestic spending was partly offset by a weakening of the net trade balance, with export volumes decreasing 2.7 percent and import volumes increasing 1.4 percent.

Business investment in fixed assets rose 1.4 percent in the December 2006 quarter, following a 0.4 percent rise the previous quarter. In the year ended December 2006, business investment fell 3.7 percent.

Dallas Welch
Acting Government Statistician

ENDS

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