Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search


GDP growth slowed by hot weather

The economy continued to expand at the end of last year, but hot, dry weather curbed the rate of growth.

Hot, dry weather before Christmas led to a 2.7 percent decrease in agricultural production Photo: Southland Regional Council

Official figures show gross domestic product, which is a broad measure of the health of the economy, increased 0.6 percent in the three months to December, and 2.9 percent for the year.

The services sectors led the way, with real estate agents and letting agencies doing well.

"Growth was widespread across many service industries, with business services, and rental hiring and real estate services providing momentum," Statistics NZ national accounts senior manager Gary Dunnet said.

"Retail trade and wholesale trade were also key contributors to growth this quarter."

But hot, dry weather hit agricultural production, which declined 2.7 percent.

Falling milk production led to less processing and fewer dairy exports.

Household spending and investment remained buoyant, due in part to people eating out more and spending more on groceries and alcohol.

The dollar fell initially on the news, dropping 0.25 cents to US73.05.

ASB Bank chief economist Nick Tuffley said, leaving the weather aside, the economy was not doing too badly.

"The underlying momentum looks pretty solid."

While growth remained respectable, once the rising population was factored in, the gains per person were mediocre, rising 0.1 percent in the December quarter and 0.7 percent over the year.

ANZ Bank senior macro strategist Phil Borkin said he expected the pace of growth to remain around current levels.

"There remain risks from the global backdrop, especially, most recently, on the trade front, and we expect household consumption growth to slow ... as precautionary saving is rebuilt," he said.

"But with fiscal stimulus around the corner, the terms of trade at historic highs and internal and external imbalances far less pronounced than they'd typically be at this point cycle, we don't see the cycle tipping over in any meaningful way just yet."

© Scoop Media

Top Scoops Headlines


Gordon Campbell: On Politely Fake Political Obituaries (And The Paris Discord)

One unfortunate side effect of “personality politics” is that when prominent politicians die, the niceties we observe at the death of private individuals get automatically extended to them as well... More>>


Unique And Vanishing: NZ Biodiversity Losses Match Global Crisis

One might think that it is buffered from some of the effects of biological erosion, especially since people only arrived less than 800 years ago. But as we show, the impact on wildlife has been catastrophic. More>>

Your Name Here(ish): Sponsor A Section On! has just launched Section Sponsorships - the newest way for you to gain exposure for your brand to Scoop’s high value audience of 500,000 monthly readers. More>>


You Did It! The Scoop 3.0 PledgeMe Closes

Update: The Scoop 3.0 Crowdsale and Crowdfunding Campaign met its target with a total of $36,024 pledged. It looks like it has all been worthwhile. We are nearly there and will ride again in 2019, our 20th year of operations. Moreover the past week has brought a number of inquiries from larger organisations, many of which have till now failed to respond to our messages... More>>


Lyndon Hood: Quiz: Advice For Nats On Collins Leadership, Or Quote From Indiana Jones Fan Fic?

In a recent rest home speech, Judith Collins pitched for the leadership of her party, while at the same time the ghost of Margaret Thatcher struggled to regain control of Collins’ body from the incoherent raging demon that animates Western ethno-nationalist protofascism. More>>