GDP growth up for June quarter

Statistics New Zealand have announced 0.4% growth in GDP for the June quarter, following a 0.2% increase in the March quarter.

Economic growth boosted by services and primary industries

Growth in services and primary industries supported a 0.4 percent increase in GDP in the June 2015 quarter, Statistics New Zealand said today.

Agricultural production increased 3 percent in the June 2015 quarter, due to increased meat and dairy farming.

“Despite falling milk prices, we’re seeing growth in dairy production,” national accounts manager Gary Dunnet said. “But over the year, agriculture is up only a little, due to dry conditions last summer.”

Food, beverage, and tobacco manufacturing was also up in the June 2015 quarter, due to strong dairy product manufacturing. Inventories of meat and dairy products built up as exports of these goods fell.

Mining also made a partial recovery from recent falls, with a 2.5 percent increase in the latest quarter. The main driver was oil and gas extraction, but this was partly offset by decreases in coal mining and oil exploration.

Collectively, the service industries were up 0.5 percent in the June 2015 quarter, but it was a mixed picture at the lower level – six industries grew and five declined. Growth was driven by business services (up 2.3 percent) and rental, hiring, and real estate services (up 1.1 percent), but these gains were partly offset by a 1.8 percent decrease in transport, postal, and warehousing – the biggest fall since March 2009.

On the expenditure measure of GDP, domestic demand was strong (up 1.3 percent). Household spending was up 0.9 percent, with increased spending on fruit and vegetables, and big-ticket items including cars and furniture. Business investment also increased (2.2 percent) – but this was offset by falling exports and rising imports.

The size of the economy (in current prices) was $241 billion for the year ended June 2015.

More data and analysis: Gross Domestic Product: June 2015 quarter

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