Purchase price of new capital rises 0.6 percent in June 2012 quarter

The price of purchasing new capital items rose 0.6 percent in the June 2012 quarter, compared with the March 2012 quarter, Statistics New Zealand said today. Five of six asset groups measured by the capital goods price index (CGPI) increased.

The major upward contributions to the CGPI came from:

• the plant, machinery, and equipment price index (up 1.1 percent)
• the residential buildings price index (up 0.8 percent).

The rises in the June 2012 quarter were marginally offset by a decrease in the price index for land improvements (down 0.3 percent), due largely to lower prices for fencing materials.

In the year to the June 2012 quarter, the CGPI rose 1.0 percent.

The CGPI measures the change in the purchase price of capital goods used by New Zealand producers.