Small rise in the Capital Goods Price Index

The Capital Goods Price Index (CGPI) rose 0.3 percent in the June 2009 quarter, Statistics New Zealand said today. The most significant upward contribution came from the plant, machinery and equipment index (up 0.9 percent). An offsetting decrease of 1.1 percent was recorded in the non-residential buildings index.

The 0.9 percent rise in the plant, machinery and equipment index follows four larger quarterly rises. Some asset types rose in the June 2009 quarter, with respondents citing higher supplier prices as the main reason for price increases, while some asset types fell, partly due to the appreciation of the New Zealand dollar.

The second-largest upward contribution to the CGPI this quarter was from the transport equipment index (up 1.4 percent), which also rose 7.6 percent in the year to the June 2009 quarter. This annual movement is the largest since an identical rise in the year to the December 1992 quarter.

The 1.1 percent fall in the non-residential buildings index was driven by lower labour rates and contractors’ margins, particularly in the construction of shops and offices, and other non-residential buildings. In the year to the June 2009 quarter, this index fell 0.1 percent, which is the first annual decrease since a 0.5 percent fall in the year to the March 1999 quarter.

The CGPI rose 4.1 percent in the year to the June 2009 quarter, compared with rises of 3.1 percent in the year to the June 2008 quarter and 2.8 percent in the year to the June 2007 quarter.

Geoff Bascand 19 August 2009
Government Statistician