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

 

Economy Grows Strongly, Up 1.7 Percent


Economy Grows Strongly, Up 1.7 Percent

Economic activity increased strongly this quarter, up 1.7 percent compared with the previous quarter according to information released today by Statistics New Zealand.

This follows growth of 0.9 percent in December 2001 and 1.0 percent in March 2002. The economy grew 3.5 percent for the year ended June 2002.

The key contributor to this quarter's growth was a lift in primary produce exports, with increases in dairy, meat and forestry exports. Overall, exports were up 6.2 percent this quarter and 3.3 percent for the year ended June 2002.

Internal demand was flat this quarter, up only 0.2 percent. There was a further increase in household spending, up 0.4 percent, with spending on major appliances and furniture up this quarter. Household spending has been quite buoyant for the last 12 months, and is up 2.9 percent for the June 2002 year. After the fall last quarter, investment in new housing showed strong growth, up 10.3 percent, and is now back to the level recorded in the December 2001 quarter.

Annually, new housing investment is up 10.7 percent.

There was a small increase in business investment, up 3.2 percent, with expenditure on plant, machinery and equipment being the major contributor, increasing 5.6 percent. This was partly offset by falls in investment in non-residential buildings and transport equipment. There was little change in total inventories this quarter, following the large build-up in each of the last three quarters. This quarter, a run-down in inventories of primary produce destined for export was offset by a build-up in the inventories of other industries.

Following two quarters of flat activity, manufacturing recovered this quarter, increasing 4.3 percent. The increased activity was widespread with most of the manufacturing industry groups recording increases. For the June 2002 year, manufacturing activity was up 0.9 percent.

Primary industries increased 2.6 percent in the June 2002 quarter. Livestock production rose 0.5 percent, and although dairy production was flat this quarter, it increased 5.4 percent for the June 2002 year. Fishing activity declined, with squid catches down from last quarter's high. Forestry increased 4.7 percent, reflecting increases in both export log and saw log removals. Following last quarter's fall, mining and quarrying activity rose sharply, up 16.0 percent, largely driven by increased demand for natural gas used in thermal electricity generation and manufacturing.

The services industries increased 0.6 percent during the June 2002 quarter. Within this group, transport and communication activity declined by 0.2 percent. An increase of 2.5 percent in communication services was more than offset by a 2.7 percent decrease in transport and storage.

Finance, insurance and business services increased 0.9 percent. The main increases continued to come from financial services and real estate activity, with a lift in sales of industrial and commercial buildings this quarter.

The expenditure-based measure of GDP, released concurrently with the production-based measure, recorded a 1.2 percent increase for the June quarter.

Brian Pink Government Statistician

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>


Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>

ALSO:



Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>


Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>