New houses and machinery drive up capital goods prices

The Capital Goods Price Index (CGPI) rose 1.4 percent in the September 2008 quarter, Statistics New Zealand said today. Higher construction costs for new houses and increases in prices for machinery were the main contributors to the rise. All six asset groups in the CGPI rose in this quarter.

The most significant upward contribution came from the residential buildings index (up 1.4 percent) in the September 2008 quarter, reflecting higher costs for constructing new houses. In the year to the September 2008 quarter, the residential buildings index rose 4.4 percent.

The plant, machinery and equipment index rose 1.1 percent and made the second most significant contribution to the CGPI in this quarter. The main drivers for this rise were higher supplier prices for furniture, and increased prices for agriculture and forestry equipment. In the year to the September 2008 quarter, the plant, machinery and equipment index rose 3.1 percent.

On an annual basis, the CGPI rose 3.8 percent in the year to the September 2008 quarter. This followed rises of 2.3 percent and 4.0 percent in the years to the September 2007 and September 2006 quarters, respectively.