Capital goods prices fall in December quarter

The capital goods price index (CGPI) fell 0.7 percent in the December 2010 quarter, Statistics New Zealand said today. This is the largest quarterly fall since the September 1990 quarter (down 0.9 percent). In the latest quarter, five of the six broad asset groups showed decreases.

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 downward contributions to the CGPI came from:

• the plant, machinery, and equipment index (down 2.0 percent), reflecting the appreciation of the New Zealand dollar and lower computer equipment prices
• the residential buildings index (down 0.2 percent), reflecting lower dwelling and out-building prices
• the non-residential buildings index (down 0.2 percent), reflecting lower shop, office, and warehouse building prices.
• In the year to the December 2010 quarter, the CGPI fell 0.3 percent.  

Geoff Bascand 17 February 2011

Government Statistician