Capital Goods Prices Rise

Capital Goods Price Index: March 2002 quarter

Capital Goods Prices Rise

Capital goods prices rose 0.5 percent in the March 2002 quarter compared with the December 2001 quarter, according to Statistics New Zealand. On an annual basis the Capital Goods Price Index rose 1.6 percent from the March 2001 quarter to the March 2002 quarter.

The most significant contribution to the overall increase of 0.5 percent in the March 2002 quarter came from a 1.3 percent increase in the residential buildings index. This is the largest quarterly increase in the residential buildings index since a 1.9 percent increase was recorded in the June 1996 quarter. The non-residential buildings index rose 0.5 percent in the March 2002 quarter, compared with a 0.8 percent increase last quarter.

The plant, machinery and equipment index fell 0.2 percent in the March 2002 quarter. The most significant downward contributions to this index came from a 0.9 percent fall in the computer machinery index and a 2.3 percent fall in the lifting and handling equipment index.

The plant, machinery and equipment asset group includes a large number of imported items. The prices of these items are influenced by movements in the value of the New Zealand dollar. In the March 2002 quarter, the New Zealand dollar rose against the Euro, US, UK, Australian and Japanese currencies.

Brian Pink Government Statistician

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