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


Government: Delivering Lower Card Fees To Business

Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses ... More>>

SEEK NZ Employment Report: April 2021

OVERVIEW OF APRIL 2021: STATE OF THE NATION: April, for the second consecutive month, saw the highest number of jobs ever advertised on Applications per job ad fell 9% month-on-month (m/m). SEEK job ads were up by 12% m/m. SEEK job ads were ... More>>

Commerce Commission: Warns Genesis Over Business Billing Errors

The Commerce Commission has issued a warning to Genesis Energy Limited about billing errors concerning electricity line charges to business customers. Genesis reported the errors to the Commission. The Commission considers that Genesis is likely to ... More>>

Stats: Lower Job Security Linked To Lower Life Satisfaction

People who feel their employment is insecure are more likely than other employed people to rate their overall life satisfaction poorly, Stats NZ said today. New survey data from the March 2021 quarter shows that 26 percent of employed people who thought ... More>>

The Conversation: The Outlook For Coral Reefs Remains Grim Unless We Cut Emissions Fast — New Research

A study of 183 coral reefs worldwide quantified the impacts of ocean warming and acidification on reef growth rates. Even under the lowest emissions scenarios, the future of reefs is not bright. More>>

The Conversation: Why Now Would Be A Good Time For The Reserve Bank Of New Zealand To Publish Stress Test Results For Individual Banks

Set against the backdrop of an economy healing from 2020’s annus horribilis , this week’s Financial Stability Report (FSR) from the Reserve Bank (RBNZ) was cautiously reassuring: the country’s financial system is sound, though vulnerabilities remain. More>>