New Zealand’s gross domestic product was up a seasonally adjusted 0.5 percent on quarter in the second quarter of 2019, Statistics New Zealand said on Thursday.
That exceeded expectations for an increase of 0.5 percent although it slowed from 0.6 percent in the first quarter.
On an annualized yearly basis, GDP climbed2.1 percent – again beating forecasts for 2.0 percent and slowing from 2.5 percent in the three months prior.
Growth was led by the services industries, which grew 0.7 percent following a 0.3 percent growth in the March 2019 quarter. Primary industries also rose 0.7 percent, following two consecutive declines. Goods-producing industries fell 0.2 percent this quarter, following a 1.9 percent rise in the March 2019 quarter.
“Service industries, which represent about two-thirds of the economy, were the main contributor to GDP growth in the quarter, rising 0.7 percent off the back of a subdued result in the March 2019 quarter,” national accounts senior manager Gary Dunnet said.
The size of New Zealand’s economy in annual current price terms hit a milestone in the June 2019 quarter, reaching NZ$300 billion for the first time.
“It took about fourteen years for the economy to go from NZ$100 billion to NZ$200 billion, and nine years to reach $300 billion,” Dunnet said.
Household spending grew 0.5 percent in the June 2019 quarter, following a 0.4 percent rise in the March 2019 quarter. Spending on durable goods increased by 0.8 percent, while household spending on services rose 0.5 percent. Spending on non-durable goods remained flat in the quarter.
Investment in fixed assets dropped 1.0 percent in the June 2019 quarter, following 2.7 percent growth in the March 2019 quarter. This was largely due to lower investment in non-residential building, which fell 3.7 percent. The fall was partially offset by a 2.1 percent increase in investment in plant, machinery, and equipment.
GDP per capita increased 0.2 percent in the June 2019 quarter, following an increase of 0.1 percent in the March 2019 quarter. For the June 2019 year, GDP per capita was up 0.8 percent.
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