Capital goods prices increase 0.4 percent

The capital goods price index (CGPI) rose 0.4 percent in the September 2010 quarter, Statistics New Zealand said today. While this is a modest increase, it is the largest quarterly rise since the March 2009 quarter. In the latest quarter, five of the six broad asset groups showed increases.

The CGPI measures the change in the price of physical capital goods purchased by New Zealand producers of goods and services. Capital goods are assets used to produce goods and services for more than one year.

The major upward contributions to the CGPI came from:

• the residential buildings index (up 0.4 percent), reflecting higher dwelling and out-building prices
• the other construction index (up 0.8 percent), reflecting higher raw material costs for constructing infrastructure such as pipelines and roads
• the plant, machinery, and equipment index (up 0.3 percent), reflecting higher raw material costs and a depreciation of the New Zealand dollar.

In the year to the September 2010 quarter, the CGPI increased 0.2 percent.

Highlights

• In the September 2010 quarter compared with the June 2010 quarter:
• The capital goods price index (CGPI) rose 0.4 percent.
• The residential buildings index rose 0.4 percent.
• The other construction index rose 0.8 percent.
• The plant, machinery, and equipment index rose 0.3 percent.

From the September 2009 quarter to the September 2010 quarter:

• The CGPI increased 0.2 percent, compared with a 0.6 percent decrease in the year to the June 2010 quarter.