Machinery and new houses push up CGPI

The Capital Goods Price Index (CGPI) rose 1.0 percent in the June 2008 quarter, Statistics New Zealand said today. Increased prices for plant, machinery and equipment, and higher construction costs for new houses were the main contributors to the rise. All six asset groups in the CGPI rose in this quarter.

The plant, machinery and equipment index made the most significant upward contribution to the CGPI, rising 1.5 percent in the June 2008 quarter and recording the largest increase since the December 2000 quarter. The increase was mainly due to higher prices for printing machinery and parts, which was driven by higher suppliers' prices and depreciation of the New Zealand dollar. In the year to the June 2008 quarter, the plant, machinery and equipment index rose 2.2 percent.

The second-largest upward contribution to the CGPI came from the residential buildings index, which rose 0.8 percent in the June 2008 quarter. This rise was mainly the result of higher prices for the construction of new houses, driven by increased prices for construction components. In the year to the June 2008 quarter, the residential building index rose 4.4 percent, the lowest annual increase since the September 2003 quarter.

In the year to the June 2008 quarter, the CGPI rose 3.1 percent. This followed rises of 2.8 percent and 3.5 percent in the years to the June 2007 and June 2006 quarters, respectively.

Statistics NZ advises that revisions have been made to historical CGPI data. See the related Hot Off The Press for more information.