Price of capital goods unchanged in September 2011 quarter

The capital goods price index (CGPI) was unchanged in the September 2011 quarter, Statistics New Zealand said today. All but one of the major indexes in the CGPI rose in the latest quarter. These increases were offset by a fall in the price index for plant, machinery, and equipment, which fell 1.5 percent.

The price index for plant, machinery, and equipment was also down 4.2 percent on an annual basis. The largest contributor to this decrease was the price index for computer equipment, which fell 7.1 percent on a quarterly basis and 20.5 percent on an annual basis. The price for structural metal products in the plant machinery and equipment group also fell 13.5 percent in the quarter. This was influenced by exchange rates and competition.

Civil construction prices increased 0.8 percent for the September 2011 quarter and 5.3 percent compared with the September 2010 quarter. Increased roading costs contributed to the rise in this index.

The price index for construction of residential buildings rose 0.7 percent in the September 2011 quarter. Prices for the construction of non-residential buildings rose 0.4 percent for the latest quarter.

In the year to the September 2011 quarter, the overall CGPI also showed no change.

The CGPI measures the change in the price of capital goods purchased by New Zealand producers of goods and services, such as businesses, government, and households.

See also:
Capital Goods Price Index: September 2011 quarter – Information release